Case may usher in new era for purchasers of new condo units

Case may usher in new era for purchasers of new condo units

December 31, 2007

Toronto condo lawyer Armand Conant weighs in on the increasing problem of insurance companies refusing new clients or demanding higher premiums in a recent Reuters article.

The news service reports that Aviva Insurance Company of Canada stopped taking on new business from condo corporations in Quebec, due to lack of regulation and the high amount of claims.

“Ontario and Quebec are expected to introduce new legislation over the next few months to reform outdated provincial condo laws that critics say do not go far enough to prevent quality problems as condo buildings age,” the article states.

Reuters goes on to say that other insurance companies are being more restrictive about which condo corporations they will insure, and the cost of coverage is rising.

"We know it's a growing problem across Canada," says Conant, partner at Shibley Righton LLP, in the article. "Premiums are going up and in Ontario people are concerned."

Reuters reports that cases of shoddy construction in Toronto “have led to lawsuits and high repair costs for problems such as water leaks, with premiums and insurance deductibles expected to grow further.”