Regulatory Changes Aim To Curb Rising Strata Insurance Rates In B.C.

More than 670,000 strata properties exist in British Columbia, ranging up to more than $200 million in insured value for these buildings and the common property within them.

Strata insurance is more than an expense incurred by strata corporations out of caution, these corporations are obligated by the Strata Property Act to secure property and liability insurance based on the full replacement value of the property in question.

In recent years the cost of strata insurance premiums have drastically increased averaging 40 per cent higher each year province-wide. Deductibles have similarly increased annually, often with triple digit increases. The strata insurance industry can significantly impact housing affordability for homeowners and renters, as well as the cost of individual homeowner strata insurance. The provincial government has now responded with regulatory changes, effective November 1, 2020, targeting a lack of transparency affecting the strata insurance