{"id":15887,"date":"2020-06-19T11:11:00","date_gmt":"2020-06-19T18:11:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=15887"},"modified":"2020-06-16T11:57:36","modified_gmt":"2020-06-16T18:57:36","slug":"bc-strata-insurance-rates-up-40-on-average-more-than-doubling-in-6-of-buildings","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2020\/06\/bc-strata-insurance-rates-up-40-on-average-more-than-doubling-in-6-of-buildings\/","title":{"rendered":"BC Strata Insurance Rates Up 40% on Average, More Than Doubling in 6% of Buildings"},"content":{"rendered":"

Strata corporation insurance rates have jumped about 40% across BC since last year, with deductibles sometimes leaping to triple-digit increases, the B.C. Financial Services Authority said June 16.<\/p>\n

\u201cThe current state of the strata insurance market is unhealthy,\u201d said authority vice-president and deputy superintendent for regulation Frank Chong.<\/p>\n

Among key report findings, based on a survey of 6,000 strata and townhouse properties, are :<\/p>\n

\u2022 an average increase of 40% year-over-year to strata insurance premiums province-wide;
\u2022 a 50% increase in Metro Vancouver;
\u2022 54% of strata properties experienced a premium increase of less than 30% compared to premiums the previous year;
\u2022 31% of strata properties saw increases in the 30-50 % range;
\u2022 9% faced year-over-year increases of 50 -100%; and
\u2022 6% saw increases in excess of 100% compared to the previous year.<\/p>\n

\u201cPrice pressures will continue,\u201d the authority said in the report to Minister of Finance Carole James. \u201cBuildings considered to be higher risk are expected to face the most significant increases as well as the possibility of not being able to obtain full, or in rare cases any, insurance coverage.”<\/p>\n

The data is in an interim report done at the direction of the provincial government. Further findings will be released in the fall after continued stakeholder consultations, Chong said.<\/p>\n

The authority regulates the province\u2019s insurance industry, among other things.<\/p>\n

CEO Blair Morrison said the market is failing to meet goals of sustainability, affordability and availability<\/p>\n

\u201cDespite large increases already being felt, the situation has not yet stabilized, meaning many stratas, particularly those in buildings considered to be higher risk by insurers, can expect to face further pricing pressures as well as the risk of not being able to obtain full strata property insurance coverage,\u201d Morrison said.<\/p>\n

The industry generates about $300 million in premiums, covering more than $100 billion of insured property value. Coverage is mandatory under BC\u2019s Strata Property Act, the authority told James.<\/p>\n

Insurance under the act, which must provide full replacement value of the common strata property and assets, does not cover individual unit insurance, which owners need to ensure under individual policies.<\/p>\n

The authority said earthquake coverage is not required under the act, but it is often included in strata property coverage.<\/p>\n

\u201cStrata corporations that choose not to purchase earthquake coverage are still covered for fire damage following an earthquake,\u201d the authority told James. \u201cAn estimated 1.5 million residents live in strata properties in BC and properties can range from under $1 million to over $200 million in insured value.\u201d<\/p>\n

The investigation found evidence showing the industry has been incurring losses over the past three years from mostly minor claims, particularly from water damage, due to poor building maintenance<\/p>\n

\u201cThe data suggests that strata insurance has also been used to fill in the gaps left by other forms of protection such as home warranties for new buildings and maintenance programs for older buildings,\u201d the authority said.<\/p>\n

Further complicating things is the exposure to risk insurers have to earthquake damages in B.C. which has prompted many to reduce the amount of insurance they offer, the study found.<\/p>\n

\u201cWith this reduction in capacity comes upward price pressures,\u201d the authority said.<\/p>\n

Study : BC Strata Insurance Market “Unhealthy”<\/a> by Jeremy Hainsworth | BIV<\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Strata corporation insurance rates have jumped about 40% across BC since last year, with deductibles sometimes leaping to triple-digit increases, the B.C. Financial Services Authority said June 16. \u201cThe current … [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-15887","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"\nBC Strata Insurance Rates Up 40% on Average, More Than Doubling in 6% of Buildings • 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\/06\/bc-strata-insurance-rates-up-40-on-average-more-than-doubling-in-6-of-buildings\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BC Strata Insurance Rates Up 40% on Average, More Than Doubling in 6% of Buildings • Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Strata corporation insurance rates have jumped about 40% across BC since last year, with deductibles sometimes leaping to triple-digit increases, the B.C. 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