From Premium Hikes to Deductibles: How Proactive Water Protection Saves Condo Owners Thousands

Insurance used to be the safety net condo boards relied on. A leak would occur, a claim would be filed, and the insurer would pay the bill. That model is disappearing.

In British Columbia and across Canada, deductibles have climbed from $50,000 to $250,000 or more in just a few years. Premiums, meanwhile, have risen by tens of thousands annually. In some cases, boards have seen increases of $90,000 in a single renewal cycle.

The reason is clear. Water damage has overtaken fire as the leading cause of property loss in condominiums. More than 70 percent of claims by dollar value are related to leaks. For insurers, the math is unsustainable. For condo boards, it has become a crisis.

The Financial Burden on Owners

When deductibles rise, the impact falls directly on owners. Many are now required to purchase additional deductible insurance just to feel secure. In buildings with repeated claims, insurers may demand higher contributions to contingency funds, putting further pressure on budgets.

Boards face tough choices: raise fees, dip into reserves, or risk being underinsured. None of these options are sustainable for long-term governance.

Prevention as a Path Forward

While insurance costs continue to climb, there is one lever boards can pull: prevention. Certified leak detection systems provide exactly what insurers are looking for — verifiable proof that a building is reducing risk.

These systems combine in-pipe monitoring, point-of-location floor sensors, and automatic shutoff valves. When integrated with cloud-based alerts, boards and managers can react instantly. This reduces the severity of incidents and, in many cases, prevents claims altogether.

Insurers recognize this. Buildings with certified systems are increasingly eligible for discounts of five to thirty percent. For some stratas, the savings alone are enough to cover the cost of installation within three to six years.

More Than Money

The benefits extend beyond the balance sheet. Owners gain peace of mind knowing that their homes are actively protected. Boards demonstrate proactive leadership. And the building itself maintains its integrity, which translates into stronger property values.

Prevention does not eliminate risk entirely, but it shifts the balance of power. Instead of waiting for the next claim, boards can demonstrate to residents and insurers alike that they are in control.

If your strata is facing rising premiums and higher deductibles, prevention may be your strongest bargaining chip. Leak detection is not just a tool — it is a strategy for financial stability.