Quote:
Originally Posted by buhdeh
So how bad is the insurance issue for people to suggest paying 100K+ more for a “fixer upper” TH than a condo? Genuinely curious cause I don’t know. Does this only affect condos or also strata townhouses?
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It varies building by building. But the problem is that insurers are getting more and more hesitant to insure buildings that met certain criteria. They'd either outright deny any coverage option, or ask for a significant increase (compare to before) with a HUGE increase in deductible.
But for many stratas, not having an insurance is not an option because many would lose the minimum requirement set by lenders.
The issue arise mainly in the way condo is structured. When you are trying to fix a core problem, unlike townhouses where it's unit by unit (and you tend to have less units in the same space), you have to fix the whole building or else it might spill into other floors in another date.
If you are looking into condos or really any strata units, you should DEFINITELY request their strata meeting minutes of the last few years as well as assessments, because in some of the buildings, it has gotten so bad that it simply got postponed but never fixed the problem because people simply can't afford to pay for it.