Why Condo Insurance Are Rising So Dramatically?

Here are some of the answers the insurance industry is providing:

• Major reinsurers are hiking rates to cover catastrophic damage around the globe. 
• Some insurers are opting out of the strata market and lessening competition.
• Construction costs are rising, meaning repairs are more expensive. 
• Buildings have more amenities, which hike replacement costs. 
• Some stratas are careless about budgeting for maintenance, meaning more frequent and more expensive claims.

Recommendations by the insurance industry:

• Mandatory household insurance for all residents’ units, as opposed to the building. That would offload some claims onto individuals.
• More stringent requirements for prevention technology, such as water sensors, flow meters and shut-off valves.
• Heightened discipline around capital repair and replacement budgets of stratas.
• A cap on payouts for losses.
• A bare-bones legal definition of a condo unit to reduce risk exposure to just the structural components and make amenities and finishings the responsibility of the unit owner to insure.

Reference: https://www.timescolonist.com/opinion/columnists/les-leyne-insurance-jump-for-victoria-condo-building-817-000-from-265-000-1.24085281