Moreover, all declarations (other that some of the first ones written 25 to 30 years ago) require that the corporations regularly have an insurance appraisal done by a qualified and independent appraiser in order to determine the full replacement cost.
This is often overlooked by both property managers and board members alike.
You simply cannot apply the consumer price index to the annual premiums! Buildings do not buy groceries, etc. that make up the 'typical bundle of goods' used to determine the CPI.
The process of 'trending up' the last year's insurance premiums by applying an inflation factor 'by feel' is not a prudent practice.
Only a qualified and trained appraiser, who stays abreast of changing labour and material costs, can ensure that your corporation's units and common elements are properly valued for their replacement cost in today's dollars.