Learn more about common questions asked about condo and strata corporation insurance and IBC’s Condominium/Strata Action Plan.

Frequently Asked Questions

Q. Will working with IBC’s Risk Manager help lower the insurance premiums for my condo or strata corporation?

  • IBC's Risk Manager can work with condo or strata corporations through their broker to identify issues that are preventing a condo or strata corporation from obtaining insurance, or issues that may be leading to higher premiums. It's ultimately up to the condo or strata corporation to decide whether to address those issues.

Q. Why is there such a problem with condo or strata corporation insurance in Alberta and BC?

  • Some of the factors contributing to the current state are an increase in claims related to severe weather, the increase in the frequency and severity of claims not related to weather, the use of building construction materials that may increase risk, increasing replacement costs and a lack of an effective risk management strategy.

Q. How are insurance premiums for condos and stratas set?

  • Insurance premiums are determined based on risk and many other factors. Insurers consider the likelihood of a customer (or a group of customers with a similar set of circumstances) making a claim, and how much those claims will likely cost. The price for premiums is based, in part, on an insurer's best estimate of the amount it will be required to pay out in claims on the policies it issued in any given year. Insurers pool the premiums of their many policyholders to cover the losses claimed by the few in that year.