B.C. financial authority says strata insurance rising at unsustainable rate
VANCOUVER -- An interim report from the regulator that ensures stability in B.C.'s financial sector says an “unhealthy” market is driving up strata insurance rates.
Strata insurance is purchased by the owners of a strata building such as a condo tower, to cover the building and its shared contents and property – but the report finds premiums have leaped 40 per cent in one year.
In turn, the report says deductibles have seen triple-digit increases over the same period and the strata insurance market now fails to meet the goals of sustainability, affordability and availability.
The BC Financial Services Authority (BCFSA) says the problem continues and many buildings at high risk for a claim could see further increases, prompting a call for more study into the causes and any possible solutions.
“The underlying factors contributing to BC’s unhealthy strata insurance market are complex and do not present easy solutions,” said Frank Chong, BCFSA vice-president and deputy superintendent of regulation in a release Tuesday.
“Everyone involved in the market has a role to play to balance availability and affordability of insurance going forward.”
This report by The Canadian Press was first published June 16, 2020