11
Feb, 20

Condo Insurance Controversy Updates
By Brad Richert February 11, 2020

Over the past few months, strata councils from around the province have been struggling with exponential increases in condo insurance deductibles and premiums. Some stratas are unable to find insurance altogether. This issue is not limited to British Columbia. Condos in Alberta, Ontario, and throughout the United States are seeing similar problems.

It has never been more important for buyers to do their due diligence during their purchase. While depreciation reports, year-end financial statements, strata minutes and other documents are known to be important to understand when purchasing a condo, buyers and agents must pay close attention to strata insurance documentation.

Right now there is, quite honestly, very little information made available to the public. Within the mainstream media and the real estate industry, there are rumours and speculation regarding the underlying issues and possible solutions. I will be frequently be posting information for the public to this article, so be sure to check back regularly if you live in a condo or are considering a purchase.

If you have any specific questions regarding this topic or any other real estate related matter, please feel free to scroll to the bottom of the page and use the contact form.

Real Estate Industry Information:

Feb. 6, 2020: What you need to know about strata insurance rate increases (Real Estate Board of Greater Vancouver)

Jan. 16, 2020: Condo insurance crisis: What your clients need to know (Fraser Valley Real Estate Board)

Jan. 13, 2020: Condo buyers facing rising costs, challenging affordability (Kimberly Greene, Mortgage Broker News)

Insurance Industry Information:

Feb. 11, 2020: IBC creates commercial task force (Lyle Adriano, Insurance Business Canada)

Jan. 29, 2020: This commercial line’s hard market has reached ‘crisis’ point (Greg Meckbach, Canadian Underwriter)

Jan. 15, 2020: Experts react to sky-rocketing condo insurance rates (Bethan Moorcraft, Insurance Business Canada)

Jan. 7, 2020: How IBC is addressing hard market in condo insurance (Greg Meckbach, Canadian Underwriter)

Dec. 9, 2019: Experts warn rising condo insurance premiums may become “unsustainable” (Duffie Osental)

Media Coverage (BC):

Feb. 10, 2020: B.C. stratas on edge after reports of soaring insurance premiums (Dan Fumano, Vancouver Sun)

Feb. 10, 2020: B.C. insurance brokers call for legislative reforms to tackle skyrocketing strata rates (Sean Boynton, Global News)

Feb. 9, 2020: Thinking of buying a condo in 2020? Don’t overlook this 1 key expense (Mark Ting, CBC News)

Feb. 7, 2020: Insurance issues could cause B.C. condo market collapse, homeowners association warns (Ross McLaughlin, CTV News)

Feb. 5, 2020: Condo Smarts: Building’s lack of insurance puts buyers in limbo (Tony Gioventu, Times Colonist)

Jan. 16, 2020: Strata building insurance spikes on Peninsula (Tracy Holmes, Surrey Now-Leader)

Jan. 12, 2020: LETTER: Province must take action on condo insurance (Joanne Reynolds, Langley)

Jan. 8, 2020: VIDEO: Insurance shock for Langley condo owners (Dan Ferguson, Langley Advance Times)

Jan. 3, 2020: Langley condo owners reeling after strata insurance deductible jumps from $5K to $250K (Simon Little, Global News)

Dec. 18, 2019: Insurance sticker shock for condo owners (Ross McLaughlin, CTV News)

Dec. 4, 2019: Condo Smarts: How to manage the dramatic increase in insurance rates (Tony Gioventu, Times Colonist)

Nov. 29, 2019: B.C. condo owners brace for sticker shock as insurance rates surge ’50 to 300%’ (Simon Little & Jill Bennett, Global News)

Media Coverage (AB):

Jan. 21, 2020: IBC hiring risk manager, but solutions to coverage issue ‘challenging’ (Vincent McDermott, Fort McMurray Today)

Jan. 15, 2020: $80m condo complex stuck without insurance in Fort McMurray (Jamie Malbeuf, CBC News)

Jan. 15, 2020: Soaring condo insurance rates help push Fort McMurray homeowner into bankruptcy (Jamie Malbeuf, CBC News)

Dec. 13, 2019: Rising insurance costs worry condo owners (Jeff Slack, 660 News)

Nov. 21, 2019: Insurance premiums jump as much as 700% at some Alberta condo buildings (Julia Wong, Global News)

Oct. 28, 2019: City councillors to lobby Albertan government over runaway condominium insurance prices (Lyle Adriano, Insurance Business Canada)

Brad Richert Sotheby's International Realty Canada

Brad Richert

Personal Real Estate Corporation | License ID: 160478

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