In 2024, property owners expect further increases in their insurance premiums, which will impact renters.
Annual premium increases have fluctuated between 10% and 35% in recent years.
The Corporation of Real Estate Owners of Quebec (CORPIC) said property tax increases and building insurance premium increases would be borne entirely by tenants. The mechanism applies with the Administrative Housing Tribunal's rent determination grid.
Many property owners are trying to curb this increase in insurance premiums by increasing their deductibles.
The explosive increase in insurance costs for property owners is explained by the state of the rental property inventory, which has been in the province's old property manager for over 20 years, according to the CEO of CORPIC, who is also a general contractor, owner and owner.
“These are buildings in which disasters are occurring more and more frequently. “Global warming, with more frequent freeze-thaw events in winter, increases the risk of more frequent disasters,” said Éric Sansoucy.
According to CORPIC, the regulatory framework impacts the ability of certain owners to renovate their buildings or carry out major repairs. The rules make it difficult to be profitable on larger jobs.
Climate change also means that the risk of damage increases.
“We believe the risks are still growing, but what is exacerbating the situation are the rising costs of remediation. This is the rising cost of construction, so it is an industry where there is a labor shortage, it is an industry where costs are rising. “So when the insurer calculates how much a reconstruction or renovation costs, their calculation will show higher figures this year,” Mr. Sansoucy added.
It can also be more difficult for property owners to find insurance coverage. According to CORPIC, insurers tend to specialize.