The Looming Condominium Insurance Crisis

The condominium insurance industry is facing a crisis with rising premiums and deductible limits, primarily due to the frequency of floods and significant damages. To reduce the risk of major floods and costly insurance claims, condominium corporations can take practical steps. Installing water detection systems can detect leaks and minimize damage, while annual inspections of unit components prone to flooding or fire can prevent damage and claims falling within the deductible amount. Corporations should work with legal counsel to address liability concerns related to inspections. Being proactive in risk management, implementing maintenance and inspection plans, and adopting technological innovations can help reduce risks and keep operating costs down.