Increasing Demand and Reduced Insurance Appetite May Create an Insurance Crisis
As more and more of Canada’s population migrate to the advantageous vertical life in urban centres, demand for condos continues to grow, particularly in large cities like Toronto and Vancouver. However, condo corporations are facing a new challenge – insurance.
Insurance carriers have begun to impose tighter controls and restrictions in recent years, and demand for insurance has increased. Condo Corporations that previously enjoyed lower deductibles are experiencing significant increases upon renewals. Brokers must look for creative ways to help condo corporation clients receive coverage, including implementing risk management procedures and utilize technological advancements for specific risks such as water.
“Water damage is one of the biggest sources of property insurance losses for condominium corporations,” commented Peter Kennedy, Senior Vice President and National Director of Aon’s Canadian Real Estate Practice in a recent Canadian Underwriter article. “Toilets overflow. Sinks back up. The washer or dishwasher has an overflow on the 10th floor, the water can run all the way down to the bottom floor.”
IoT systems that monitor water both on a building level as well as inside the specific units provide management and condo boards the oversight needed to protect residents and keep claims under control. “…water detection and shutoff systems will automatically turn off the water in units if unusually high levels of water are detected,” continued Kennedy (Source).
Risks will vary by occupancy – a 30 story condo building with multiple fixtures/appliances within all units will carry a greater risk of water damage than a four-story building. A building that is over 20 years old is likely to be at a higher risk profile than a newly constructed facility. Other factors that could impact your building’s risk include climate, major renovations/construction projects, and a history of previous water damage events.
This is where Eddy offers significant value to Condo Corps and the residents they represent. Our comprehensive Intelligent Water Monitoring and Leak Protection system fully protects the tenants and building assets, ultimately reducing the risk of water damage events in a building. Our suite of products and services empowers property management with the necessary tools and data to both mitigate acute water damage risks and prevent future events from occurring.
Eddy’s system can provide carriers with increased confidence required to either continue coverage or keep deductibles at a reasonable rate To learn more about how Eddy can help your Condo Corporation mitigate against water risk, please contact us at info@eddysolutions.com.
About Shkya Ghanbarian
Shkya Ghanbarian is currently the Director of Channel Partners and Insurtech here at Eddy solutions. With a passion for delivering exceptional value and education to property owners, Shkya has spent more than 14 years in the home and building services sector. Shkya has been with Eddy since inception, working with Insurance companies, brokers and constructors throughout Canada and the US. Shkya’s role here at Eddy is focused on account/ program management, education for internal and external stakeholders on Eddy’s offerings, and team management. She has been exposed to clients in both the private and public sectors and has experientially gained project management and leadership skills in managing all contract types and projects from concept to closeout.
About Eddy Solutions
Eddy Solutions is an industry leader in leak protection and water monitoring solutions. Our suite of smart products offers a comprehensive water management system for building operators and homeowners that protects, controls, and conserves water. Our products have saved thousands of customers millions of dollars in damages and millions of litres of water waste by continuously monitoring water usage in their properties. For more details, please contact us at 1 877 388 3339 or email info@eddysolutions.com.
