RSS

Strata Insurance: Action from BCREA

Many strata owners are facing significant increases in insurance premiums and deductibles. While the word "crisis" is used often in media articles, BCREA believes long-term government policy changes should be made very carefully and with as much information as possible.


There are about 30,000 strata corporations in BC and at least one-quarter of the population lives in strata units. Higher insurance costs for strata corporations get passed down to owners in the form of increased strata fees. If the increases are significant, then there's a negative impact on housing affordability.


The current situation developed over several years. Commonly cited causes for the rising cost of strata insurance include the size and location of the buildings, materials used, claims history, the high value of real estate and high costs of repairs.


BCREA was pleased to see the Insurance Bureau of Canada form its Commercial Task Force, and we welcome the opportunity to discuss this issue with a wide variety of stakeholders in March. In the meantime, we're examining potential big picture government policy changes and looking at other jurisdictions so we can be part of the solution.

In the short term, though, there are two pressing concerns:

  1. Some strata corporations are struggling to get and renew insurance. We encourage strata corporations with this problem to contact the Insurance Bureau of Canada (1.844.227.5422). Doing so could help you find insurance and will also help us all understand the scope of this problem. 
  2. Potential buyers of individual units need to know how to navigate the uncertainty. REALTORS® working with these potential buyers have clauses they can put into Contracts of Purchase and Sale to get insurance information. To make sure all buyers are informed, BCREA has recommended that Minister of Municipal Affairs and Housing Selina Robinson amend the Form B Information Certificate to require proof of insurance. This form has to be completed when strata properties change hands.
Provided by: Norma Miller for BCREA

Comments:

No comments

Post Your Comment:

Your email will not be published
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.