The Crisis in Condominium Insurance

Condominium insurance faces a crisis due to profitability concerns for insurers. The issue arises from the mismatch between premium calculations based on the risk of large claims and the prevalence of smaller claims in condominium corporations. The author suggests that to address this problem, a shift of risks from the corporation's insurance to unit insurers or self-insurance might be necessary. This can be achieved by adjusting the standard unit description to exclude features prone to frequent water damage and negotiating larger deductibles on the corporation's policy. The aim is to alleviate pressure on the corporation's insurance by reducing smaller claims and transferring those risks to unit owners.