Condo and Strata Insurance - Should you be worried?
So far in 2020 the news in Greater Vancouver seems to be consumed by Corona Virus and Strata Insurance. Condo insurance across western Canada is going through a transformation. Premiums and deductibles are rising and in some cases, buildings are being denied insurance coverage altogether.
The insurance industry is changing across all areas and trying to manage increases in claim numbers and damage payouts. This is not only happening in strata’s; it is happening for single family homes too. Managing risk and assigning risk is the core of the insurance business.
Real Estate in BC is top of mind and drives our economy here. Both levels of government are pushing to regulate real estate and make it affordable. If the insurance industry can’t come up with a solution, the government will likely step in. Condos make up a huge chunk of our market because they are the most affordable homes available and so the government wants to avoid a crisis particularly in this type of housing.
When looking for a home with Buyers we are looking at certain “red flags” that would give us cause for concern about a strata. These are the same red flags we looked for before the insurance issues hit the news, they are just more prevalent now given the risk of much higher premiums and/or no building insurance at all.
The year ahead will be interesting and yet condos will be bought and sold in 2020 and as always we will be looking out for your best interests when researching strata homes to purchase. Please reach out to us if you have any questions about strata insurance.