“To all condo directors feeling the pain of insurance coverage . High premium reaching a half-million per year with exorbitant deductibles reaching $100,000 or more per event. Don’t wonder if your coverage is not that high just wait a year. It is time now to join a group insurance that insurance companies can competitively bid on. Interested? Drop us a line“.
Leader of the Group – Amr Bannis, P. Eng
Based on published data from InsurEye, small data pool of Insurance costs collected by CondoBI, and data we received from another condominium directors we have revealed that:
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Average condo insurance costs vary $26 – $33 depending on the region of Canada;
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Condominiums’ common element Insurance costs vary $18 – $51;
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Deductible is $25,000 – $100,000 per accident.
So, it looks like common element insurance adds about 100% or even 200% to an average condo owner’s insurance cost, making it ~ $44 – $84/per month. Some Toronto condominiums pay almost $500,000 as insurance per year, and have $100,000 deductible. Some of the condo Directors that really care about condo owners’ interests expressed disturbance related to Toronto condominium insurance and deductible amounts, and they wanted to understand condominium costs, and what condominiums get for their money. We are initiating a group of Condominiums for 3 purposes:
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To collect Insurance cost data in one pool to see the full picture of what condominiums pay to insurance companies and what they get;
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To reveal the best practice and the best insurance company on the condo Insurance market. Condo directors and owners wanted to see which insurance company might demonstrate the best combination of Insurance Premiums received and Paid amounts for the last 3 years;
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To get the best Insurance Premium rates and Deductibles.
How the goals will be reached:
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We assemble a group of condo leaders;
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Collect current cost data: Insurance Premium, Deductible and Coverage received by condominiums to show to all condo owners here;
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Publish a tender with the main requirement to offer better Insurance Premium and Deductible for all group participants and collect quotes for all condo group participants;
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Invite Insurance companies to participate. All insurance companies will be required to show their statistics of insurance premiums received and paid amounts to condominiums during the last 3 years.
How the group tender is organized:
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If a condo wants to participate, at least one of the condo directors or a property manager should:
Sign up at www.condo-fairtender.ca;
Click a checkbox inside of the condo profile and fill up the fields.
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Condo parameters and Insurance cost data entered will be visible on the public page, with condo names hidden. List of condominiums will remain on a separate page unless condo directors decide to reveal the names of the condominiums alongside insurance cost data;
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The framework of the tender is offered to be discussed at Condo Owner’s Helpline until December 10, 2020. It is a free network for condominiums that allows communicating within a building and between buildings;
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Final terms will be published at condobi.ca in the News section, and all directors will be notified;
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The tender is going to be published on December 11th,and Insurance companies will be required to publish their statistics and make their offers before January 11, 2021;
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The final decision will be made on January 15th and the winner of the tender will be identified.
Condo directors now can communicate using an internal network (just between the same condominium directors) and using an external network (between different condominium directors) and the same for condo owners.
This small video is to explain how to use those channels:
All condo owners and directors are encouraged to participate and follow our discussion of the Group Tender terms at Condo Owner’s Helpline. Everybody can monitor the discussion without registering, but registering is required if you wish to participate in the discussion, which will be greatly appreciated.
We believe that all condominiums can get much better rates if we make condo service providers compete for our contracts and projects.
Let’s join the Leaders Group and bring your vision on requirements, public pages improvements, group tender procedure, etc. to the discussion table!
Your cooperation is extremely important not to your Condominium only, but to all Toronto condominiums!
Excellent article. Keep posting such kind of info on your site.
Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!
It is a great idea that might really decrease the insurance expenses of many condominiums.
Thank you very much!
It was a perfect Idea that must work well due to Buyers’ power increase!