Navigating the Evolving Insurance Landscape for Condominium Corporations

When I first entered the industry 25 years ago, there were very few brokers and insurance providers that specialized in condominium insurance. The insurance market today offers a broader selection of both specialized brokers and insurance providers.

When it comes to management's role in sourcing insurance, it is important to give advance notice, three months is typically sufficient, to the corporation's existing insurance brokers and brokers who will be tendering. The brokers will likely request documents such as the latest property appraisal, mechanical

inspection reports, and any updates on major repairs or replacements. In my opinion, site visits with potential brokers are essential, as they allow you to discuss the coverage options while physically viewing the property.

Once you receive proposals from various brokers, it is important that you review them line by line to ensure that the proposed policies are equivalent to the corporation's existing policies. The favourable quote should then be presented to the board for the review and approval, and the board, along with management, should discuss whether any additional or improved coverage options should be considered.

While the process of tendering for insurance quotes may sound straightforward, the process can involve many details, especially if your properties have major mechanical systems or amenities like pools and hot tubs as depending on the size of your corporation, a single policy may involve multiple insurers.  It's also important to keep in mind that you first inform the corporation's current insurance provider that you will be tendering, as this ensures that they prepare their renewal for review well in advance and don't automatically bind the corporation.

I hope the above tips help you and your clients when going out for tendering and selecting an insurance provider for your respective communities.  The extensive variety of experienced insurance brokers includes those that specialize in condominium insurance coverage, which is a benefit to the industry as a whole and one that should not be taken lightly.

Pamela Wright
Regional Manager, Percel Inc.