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is wise to self - insure (paying for smaller losses out of pocket) whenever possible. 3. Increase deductible amounts Another way of limiting the number of claims made on a policy is to increase the deductible amounts. Having a higher deductible can bring premiums down and allow for smaller losses to fall below the deductible and therefore fewer to be paid out by the insurer. Some insurers are requiring deductibles be increased for this reason. 4. Review the standard unit by - law Removing those items from the standard unit by - law that are most often damaged and irreparable due to a water loss, including finishes such as flooring, kitchen cabinetry and countertops can assist in bringing property rates down. Corporations with a “ bare bones ” style standard unit by - law to one that includes only the unit shell should have a much lower rate for property insurance. The less the Corporation is responsible to repair in the event of an insured loss, the less the premium will be for that coverage, leaving the majority of the costs to fall on the unit owner ’ s insurer. 5. Get an updated insurance appraisal Your broker has likely recommended an appraisal be completed for the property every 3 to 5 years. The purpose of an appraisal is to be certain the property is insured to its full replacement cost value. Concerns about the costs associated with an appraisal are common, but the peace of mind in knowing the property is appropriately insured is invaluable. Should the building(s) be severely damaged or destroyed, the appraisal serves to resolve disagreement between the insurance company and the corporation as to what the total value of the property was prior to the loss. 6. Complete regular inspections of the property An inspection today will identify risks that may not have been visible at this time last year or even last season. Regular inspections assist your broker in making a case to the insurance company that the corporation ’ s risks are reduced and therefore premiums should be lowered. 7. Implement a claims procedure Does the corporation have a plan in place in the event of a loss? Is there a preferred disaster restoration company prepared to attend the property with knowledge of that particular
property? Any preparation done prior to a loss can improve response time and mitigate further damage. Speak to the Corporation ’ s broker about actual loss scenarios and how the Corporation would respond should those scenarios take place on your property. 8. Document updates within the units Even though certain components within the unit such as heating systems, electrical and plumbing are often not the Corporation ’ s responsibility to maintain, insurance companies have begun to look for proof of updates to these systems in older buildings (those reaching or past 40 years of age). Requesting details of this information from unit owners and keeping record of these updates will assist the Corporation when the time comes to provide it to the insurer. 9. Work with a broker you trust Market fluctuations are cyclical. There will be a time in the not so distant future when the current challenges we are facing will be lessened. But for now, with the increases in rates and the decline in insurance companies wanting to write condominium policies, it is in every Condominium Corporation ’ s best interest to leverage the knowledge and experience of their broker. A cheaper quote may be good for the Corporation ’ s budget numbers, but a quality broker will provide the support needed to better navigate through this difficult market and provide better results over time. ■
CCI Review 2021/2022 —March 2022 - 10
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