Strata Insurance Update 2021

The provincial government has released a report on the state of property insurance for strata corporations. Large increases in premiums in the past few years have re-opened the discussion on how the insurance industry sets fees for stratas.

The report, Strengthening Foundations: A Report on the State of Strata Property Insurance in British Columbia, is over 84 pages, so here are some highlights:

  • From a consumer perspective, the net effect of this unhealthy market has been rapid increases in costs associated with obtaining strata insurance coverage
  • Over the course of the past year, the market has faced near unprecedented increases in premium rates and deductibles. What has been occurring in this province is not typical. A convergence of factors has contributed to this situation, some specific to the local market, while others are global in scope
  • Insurers have been facing increasing losses from catastrophic events, both here in Canada and globally. This has put additional pressure on insurers profitability and capital
  • Earthquake risk exposure reducing insurer supply
  • There were also several changes announced that will be brought into force at a later date through regulation after further stakeholder
    consultation, including limiting and/or capping liability for individual strata owners held responsible for damage or loss;

Also, Please read this article in THE VANCOUVER SUN:

B.C. strata insurers to end ‘best terms pricing’ scheme by Jan. 1

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