In Canada, securing insurance for condo corporations can be particularly challenging—especially for those deemed “hard-to-place.” Historical claims, high-risk locations, or unusual construction characteristics can all complicate the process. Here’s how to understand these challenges and navigate them effectively.

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What Makes a Condo Corporation Hard-to-Place?

• High-Risk Locations
Condos situated in areas prone to flooding, earthquakes, or frequent fires often face higher premiums and fewer coverage options.

• Previous Claims
A history of repeated losses—particularly water or fire damage—can cause insurers to classify a building as high-risk, making it more difficult to obtain coverage.

• Unusual Building Features
Non-standard construction materials, outdated plumbing, or older building systems can increase maintenance needs and lead to more restrictive insurance availability.

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Challenges of Hard-to-Place Condos

• Increased Premiums
Higher perceived risk often results in significantly elevated premiums for condo corporations.

• Limited Coverage
Insurers may exclude certain protections—such as water or flood coverage—when buildings fall within high-risk zones.

• Policy Denials
In some cases, insurers may decline to offer coverage altogether, leaving corporations with limited options.

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Solutions for Hard-to-Place Condo Corporations

• Work with a Broker
An experienced insurance broker can guide condo boards through complex risks and help secure the most suitable coverage available.

• Mitigate Risks
Investing in maintenance, updating aging infrastructure, and implementing proactive risk-management practices can improve insurability and potentially reduce premiums.

• Tailored Coverage
Some specialized insurers offer custom policies designed specifically for higher-risk condo corporations.

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Final Thoughts

Insuring a hard-to-place condo corporation can be challenging, but with the right support and a commitment to risk reduction, it’s possible to secure the protection your building needs.

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.