Q&A: Insurance Basics

In this Q&A, insurance experts discuss various aspects of condominium insurance and how to mitigate the risk of non-renewal of insurance coverage. They mention that insurance premiums can vary significantly based on factors such as building size, location, age, and construction. Increasing deductibles and implementing standard unit by-laws can help keep premiums lower, but it depends on the insurance program and the level of coverage required.

Regarding claims, any claim with a payout can affect the policy across the board, but frequent water or fire losses may lead to changes in coverage. The main reasons given by insurers for non-renewal include the frequency of claims and older buildings with outdated components.

To prevent non-renewal, condos should focus on preventive measures, such as regular building maintenance, winter maintenance to prevent slip and fall accidents, and addressing potential hazards like dips in pavement that collect water. They should also work with their brokers and property managers to meet any insurance company requirements before renewal.

In case a condominium corporation cannot find insurance, they should seek legal advice to ensure compliance with the Act. They may need to consider sub-standard markets for insurance and take steps to secure insurance as soon as possible.