Changes have been made to B.C.’s strata insurance regulations to address the rising costs of strata insurance, says B.C.’s Ministry of Finance.
A report released by the B.C. Financial Services Authority (BCFSA) showed that strata premiums rose approximately 40 per cent on a year-to-year basis along with triple-digit increases in deductibles throughout the province.
The changes made to the B.C.’s Financial Institutions Act will be in effect Nov. 1.
Insurers or insurance agents will need to give a 30-day advanced notice directly to strata corporations if they will renew or change any materials in the insurance policy.
The change will give strata corporations an earlier warning of increasing costs and time to search for alternative options, according to the Ministry of Finance in a media release.
Insurance agents will also have to disclose their commission amount or a reasonable estimate to strata corporations.
Those unable to report the amounts will face penalties of up to $25,000 per individual or $50,000 for a corporation.
Meanwhile, referral fees given to strata property managers from strata insurance transactions are banned starting Sept. 13.
“These changes will bring further transparency to the strata insurance market and help strata corporations maintain their financial sustainability by providing them the information they need to make informed decisions about their insurance needs,” said the Ministry of Finance in the media release.
A final report and recommendations on the province’s rising strata insurance cost will also be released in the fall.
