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Strata Insurance Landscape

Rising insurance premiums & individual deductible premiums are a BIG topic of discussion and a BIG concern.  Unfortunately it’s likely going to take several months for this to settle. It’s been a very tough couple of years for Insurance Companies and even Canada – often seen as a safe haven for Insurance Companies to invest in for their shareholders – has been hit hard with claims. In 2018 alone there was over 4 billion dollars in climate related claims here in Canada ( Fires, Floods, Storms etc… ) This, coupled with suppressed premiums, has led for the rise in costs for strata owners. ( And some home owners too. ) It’s absolutely critical if you live in a strata that you stay on top of all maintenance issues. Do not defer areas that require attention. As an example, if you have hot water tanks nearing the end of their life cycle, replace them. You do not want your building labelled as a “problem building” in the eyes of insurers. As an individual strata unit owner, be sure you have the right insurance for you unit too. The policy for your building should a disaster hit – will only see the replacement of the building to the state that it was first built. So if you have done nice updates to your unit ( flooring, kitchens, baths ) be sure your individual policy reflects this. It will be interesting to see if the BC Gov’t follows Alberta where they cap’d the deductible that could be assessed on an individual to $50,000. I’ll continue to follow this story in the coming months.