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If your condo board has been feeling the pinch from rising insurance premiums lately, you’re not alone. What started as manageable annual increases has evolved into what industry experts are calling an insurance crisis, and Calgary condominium corporations are finding themselves at the center of a perfect storm that shows no signs of letting up in 2026.
The numbers tell a sobering story. Alberta led the country with a staggering 9.07% year-over-year increase in home insurance rates in 2025, with homeowners now paying an average of $660 more than they did in 2015 – an 89.7% increase over the decade. For condominium boards already managing tight budgets, these escalating costs are forcing difficult conversations about reserve funds, special assessments, and long-term financial sustainability.
The current premium crisis stems from a series of catastrophic events that have permanently altered the insurance landscape. Major losses like the 2024 Calgary hailstorm ($2.8 billion in damages) and Alberta’s unprecedented $4.1 billion in weather-related damages that year established new baseline risk assumptions that insurers continue to price into their 2026 policies.
The ripple effects extend far beyond individual storm events. Across Canada, severe weather events resulted in over $8 billion in insured losses, forcing insurance companies to reassess their risk models and pricing strategies. For Calgary’s aging condominium stock, many buildings constructed in the 1970s and 1980s, these weather patterns represent an ongoing vulnerability that insurers are increasingly reluctant to cover at previously affordable rates.
Construction costs add another layer of complexity. Since 2019, residential building construction costs have surged by 66%, significantly outpacing the 19% general inflation rate over the same period. This dramatic increase directly impacts replacement cost calculations that form the foundation of property insurance premiums.
Industry analysts predict that 2026 will bring “more of the same” challenges that boards faced in 2025, with some forecasting premium increases in the 8% to 20% range for certain types of coverage. What makes this particularly challenging for condominium management is the reduced competition in the marketplace.
The situation is compounded by what’s happening in the broader reinsurance market – the insurance that insurance companies buy to protect themselves. Global reinsurance rates increased dramatically in 2025, with many reinsurers demanding higher deductibles and stricter coverage terms. These costs inevitably flow down to policyholders, including condominium corporations.
For condominium boards, these market conditions translate into several concrete challenges. Budget planning has become significantly more complex, with many boards unable to accurately predict renewal premiums from year to year. The days of modest, predictable increases are largely behind us.
Deductibles have also shifted dramatically. Where $5,000 deductibles were once standard, many Calgary condominiums are now seeing deductibles of $25,000 or higher. This means that smaller claims – the kind that used to be routine insurance matters – now become significant board decisions about whether to pay out of pocket or file a claim that could affect future premiums.
The coverage itself is also changing. Insurers are introducing more exclusions and requiring more documentation about building maintenance, reserve fund adequacy, and risk management practices. Boards that haven’t kept up with preventive maintenance or have deferred major capital improvements may find themselves facing not just higher premiums, but coverage denials altogether.
Despite the challenging landscape, there are steps that proactive boards can take to manage these pressures. Working with experienced insurance brokers has become more critical than ever, as they can navigate the shrinking pool of available insurers and find coverage options that might not be apparent to boards working directly with carriers.
Documentation and risk management have taken on new importance. Insurers are paying closer attention to building maintenance records, reserve fund studies, and board governance practices. Condominium corporations with comprehensive maintenance programs and well-funded reserves are finding themselves in stronger negotiating positions.
Some boards are also exploring creative approaches to coverage, such as joining group insurance programs or investigating alternative risk transfer mechanisms. The key is understanding that the traditional approach of simply renewing with the same carrier may no longer be viable.
Industry experts suggest that the current insurance environment represents a fundamental shift rather than a temporary disruption. Climate change continues to drive more frequent and severe weather events, while construction costs show no signs of moderating. This means that condominium boards need to factor ongoing insurance premium increases into their long-term financial planning.
Reserve fund planning, in particular, requires a fresh look. The traditional approach of setting aside funds primarily for building maintenance and capital improvements may need to expand to include provisions for insurance cost escalation and higher deductibles.
Board education has also become crucial. Understanding insurance terminology, coverage types, and market dynamics allows boards to have more informed discussions with brokers and make better decisions about risk management and coverage trade-offs.
At UrbanTec Property Management, we’ve been helping Calgary condominium boards navigate these challenging insurance markets by leveraging our industry relationships and deep understanding of local conditions. Our approach focuses on proactive risk management, comprehensive documentation, and strategic planning that positions boards for long-term success even in difficult market conditions.
The insurance crisis facing Calgary condominiums isn’t going away anytime soon, but with the right professional support and strategic approach, boards can manage these challenges while continuing to protect their communities and investments.
Contact us today to learn how professional condominium management can help your board navigate the evolving insurance landscape with confidence.
