B.C. Municipal Affairs and Housing Minister Selina Robinson takes questions on changes to strata insurance rules, B.C. legislature, June 23, 2020. (B.C. government)

B.C. changing rules as strata property insurance costs rise

Law to end referral fees, limit what needs to be insured

The B.C. government is making changes to strata property and financial rules to deal with the soaring cost of insurance for multi-family buildings.

Amendments introduced in the B.C. legislature June 23 would require strata corporations to inform owners about insurance coverage, including increased deductibles, and allow strata councils to use their contingency funds to pay for unexpected insurance increases.

Municipal Affairs and Housing Minister Selina Robinson proposed the changes after its new regulator reviewed the insurance situation. The B.C. Financial Services Authority (BCFSA) reported June 16 that strata insurance costs in B.C. have increased an average of 40 per cent, 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 set clear guidelines for what strata corporations are required to insure.

Robinson said the changes will close “loopholes” in the regulations that have allowed strata depreciation reports to be avoided, and change the minimum required contributions from strata unit owners and developers to a strata corporation contingency fund.

RELATED: Poor construction, maintenance driving up rates

RELATED: Strata councils allowed to go online for meetings

The BCFSA found that minor claims, many from water damage in new construction or due to a lack of maintenance, have made strata insurance unprofitable for insurance companies. Earthquake risk in B.C. has also prompted insurers to reduce the amount of coverage they provide.

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

“People realize there isn’t a quick fix,” James said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

In photos and video: Colourful Canada Day parade rolls through Sicamous

Patriotic procession allows community to celebrate together while maintaining distance

RCMP find Shuswap man with replica weapon in breach of conditions

Chase resident ticketed for driving with inactive licence plates

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Popular Shuswap cross-country running event postponed

Region’s Lewiston Ultra on hold due to COVID-19 pandemic

Evacuation alert issued for Ravenscroft property

A single-family property has been put under evacuation alert due to land slippage and bank erosion

North Okanagan man gives back for Canada Day

Food packages given away to those living on the streets in Vernon

Dog rescued from rocky ledge in Summerland

Penticton Search and Rescue members perform high angle rescue

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Okanagan mine makes way for industrial project

Council holds a special meeting to rezone property

Northbound lane of Coquihalla closed after vehicle incident near Hope

A northbound lane is closed just north of the Great Bear Snowshed, according to DriveBC

Water floods North Okanagan skate park, playground

Polson Park remains closed following Tuesday storms

Two rescued from tipped sailboat in Okanagan Lake near Kelowna

The two men were quickly brought to shore by a marine rescue crew

Most Read