Quote:
Originally Posted by I-Hate-Hulse
Quoted for emphasis. This is a serious existential threat to the apartment condo as a viable form of housing. Rising premiums (and special assessments) will make the economic decision to pass on condos in favor of detached housing. (Townhouses will fare better though)
Here's a good article on the problem:
https://www.canadianunderwriter.ca/f...verage-crisis/ |
I'm not sure if that is existential. I do think it will reduce the advantage on insurance costs condos previously had.
I'm on the board of a 38 unit building. We just renewed our policy for ~$31k, which is a big increase compared to a couple of years ago. But thats still only $815 per unit. Plus I pay a bit over $200/year personally for contents and deductible buy-down, so the total is a shade over $1000/unit.
My home insurance on my single family home is about twice as much iirc, with no claims in the 12 years I've owned it. My house is probably about 2x as big and 2x as valuable as the condos in question. So on most reasonable comparisons the condo insurance is still cheaper. It used to be a lot cheaper, as my house has gone up less than the condo.
Anyway, I agree that its a big problem, and the higher fees that it has caused have hurt condo values recently. But recent increases have been less (that was 5% this year after 30% last year) which helps as well.