{"id":15160,"date":"2020-03-30T11:11:00","date_gmt":"2020-03-30T18:11:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=15160"},"modified":"2020-03-19T16:34:51","modified_gmt":"2020-03-19T23:34:51","slug":"the-cost-of-construction-claims-reinsurance-has-pushed-insurance-premiums-on-many-bc-strata-corporations-condo-owners","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2020\/03\/the-cost-of-construction-claims-reinsurance-has-pushed-insurance-premiums-on-many-bc-strata-corporations-condo-owners\/","title":{"rendered":"The Cost of Construction, Claims &#038; Reinsurance Has Pushed Insurance Premiums on Many BC Strata Corporations &#038; Condo Owners"},"content":{"rendered":"<p style=\"text-align: justify;\">Uninsured condo owners could find themselves bankrupt and homeless if they don\u2019t maintain their suites and personal insurance as strata insurance costs skyrocket, said the Condominium Home Owners&#8217; Association of BC.<\/p>\n<p style=\"text-align: justify;\">The cost of catastrophes, construction, claims and reinsurance has pushed insurance premiums on many British Columbia strata corporations, or condo owner groups, through the roof.<\/p>\n<p style=\"text-align: justify;\">The concern for individual owners is not having their own suite insurance to handle unforeseen crises, said association executive director Tony Gioventu.<\/p>\n<p style=\"text-align: justify;\">If something from a suite causes damage to common property, the suite owner would be responsible for the deductible of the corporation, he said.<\/p>\n<p style=\"text-align: justify;\">Korecki Real Estate Services Inc. manages 7,500 strata units in dozens of Lower Mainland buildings. Of the strata corporations that have recently renewed their insurance, around 90% saw premium increases of 50-100%, Korecki property manager Mike Alavi said. \u201cWe saw half of the stratas get hit on December 31, and the other half are going to get hit on April 30,\u201d Alavi said.<\/p>\n<p style=\"text-align: justify;\">Those jumps are above the Insurance Bureau of Canada\u2019s provincial average of 35%, but below some of the jaw-dropping 300-600% increases Gioventu has heard of.<\/p>\n<p style=\"text-align: justify;\">And, with building insurance rates soaring, so are deductibles, payments an individual could find themselves responsible for.<\/p>\n<p style=\"text-align: justify;\">\u201cThose deductibles are no longer $25,000,\u201d Gioventu said. Instead, an owner could face a bill ranging from $100,000 to $750,000.<\/p>\n<p style=\"text-align: justify;\">A problem, Gioventu said, is many people no longer face the condition of insurance for a mortgage once the latter is paid off. And some don\u2019t reinsure, leaving themselves vulnerable.<\/p>\n<p style=\"text-align: justify;\">Moreover, some don\u2019t maintain their suites, leaving themselves open to huge bills if something goes wrong.<\/p>\n<p style=\"text-align: justify;\">\u201cI am amazed at the number of people who don\u2019t purchase homeowner insurance when they live in condos,\u201d Gioventu said.<\/p>\n<p style=\"text-align: justify;\">He cited an issue of people hanging clothes from fire sprinkler heads.<\/p>\n<p style=\"text-align: justify;\">\u201cThese types of claims can easily reach $1 million,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">\u201cYou could lose your home.\u201d<\/p>\n<p style=\"text-align: justify;\">Gioventu also stressed the need for strata corporations \u2013 especially those in aging structures &#8211; to be proactive in maintaining their buildings. Neglect is a recipe for incurring a claim that will make reinsurance harder and more costly, he said.<\/p>\n<p style=\"text-align: justify;\">He said some stratas have received insurance notices with massive increases the day before they are due.<\/p>\n<p style=\"text-align: justify;\">\u201cWe have stratas that are in a real crisis,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">Gioventu stressed the importance of depreciation reports that can point a strata corporation toward future problems that should be planned for. But, he said, the provincial government has allowed corporations to opt out of such reports, leaving inspections neglected and planning not done.<\/p>\n<p style=\"text-align: justify;\">\u201cThe object is to make sure properties are being maintained or repaired,\u201d he said. \u201cThey are restricted by what the owners won\u2019t pay for funding.\u201d<\/p>\n<p style=\"text-align: justify;\">Part of that, he explained, is that strata councils need to remember \u201c they are a board of directors of a company and [they should] behave like that.\u201d<\/p>\n<p style=\"text-align: justify;\">And, that would make getting insurance harder as claims rise.<\/p>\n<p style=\"text-align: justify;\">\u201cThe strata is going to end up paying the cost,\u201d he said. \u201cIt could potentially end up bankrupting a community.\u201d<\/p>\n<p style=\"text-align: justify;\">Gioventu said the government has a role in mitigating the problems condo owners face.<\/p>\n<p style=\"text-align: justify;\">One plan might be for government to amend legislation to allow stratas to negotiate insurance fee charges.<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/biv.com\/article\/2020\/03\/condo-owners-face-bankruptcies-insurance-costs-soar\" target=\"_blank\" rel=\"noopener noreferrer\">Condo Owners Face Bankruptcies as Insurance Costs Soar<\/a> by Jeremy Hainsworth | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Uninsured condo owners could find themselves bankrupt and homeless if they don\u2019t maintain their suites and personal insurance as strata insurance costs skyrocket, said the Condominium Home Owners&#8217; Association of &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2020\/03\/the-cost-of-construction-claims-reinsurance-has-pushed-insurance-premiums-on-many-bc-strata-corporations-condo-owners\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-15160","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Cost of Construction, Claims &amp; Reinsurance Has Pushed Insurance Premiums on Many BC Strata Corporations &amp; Condo Owners &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2020\/03\/the-cost-of-construction-claims-reinsurance-has-pushed-insurance-premiums-on-many-bc-strata-corporations-condo-owners\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The Cost of Construction, Claims &amp; 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