November 23, 2022
  • November 23, 2022
  • Home
  • Property insurance
  • British Columbia Changes Rules As Strata Property Insurance Costs Rise – Victoria News

British Columbia Changes Rules As Strata Property Insurance Costs Rise – Victoria News

By on June 23, 2020 0

The BC government is making changes to strata financial and real estate rules to deal with soaring insurance costs for multi-family buildings.

Changes introduced to the British Columbia legislature on June 23 would require strata companies to notify owners of insurance coverage, including increased deductibles, and allow strata boards to use their contingency funds to pay for unforeseen insurance increases.

Municipal Affairs and Housing Minister Selina Robinson proposed the changes after her new regulator reviewed the insurance situation. The BC Financial Services Authority (BCFSA) reported on June 16 that strata insurance costs in British Columbia have increased an average of 40%, and some deductibles have more than doubled in the past year.

Robinson and Finance Minister Carole James said the changes will end the practice of referral fees paid by insurers or brokers to property managers, and establish clear guidelines on what strata must insure.

Robinson said the changes will close “loopholes” in regulations that have avoided strata depreciation ratios and change the minimum required contributions from owners and developers of strata units into a contingency fund for the strata. strata societies.

The BCFSA has found that minor claims, many for water damage in new construction or due to lack of maintenance, have made strata insurance unprofitable for insurance companies. The risk of an earthquake in British Columbia has also prompted insurers to reduce the amount of coverage they offer.

James and Robinson stressed that the changes are a first step in dealing with a situation seen internationally.

“People are realizing that there is no quick fix,” James said.

[email protected]
Like us on Facebook and follow us on Twitter.

Legislative Assembly of British Columbia