Strata Corporation insurance rates have jumped about 40% across BC since last year, with deductibles sometimes leaping to triple-digit increases.
Among key findings, bases on a survey of 6,000 condo and townhouse properties are:
-an average increase of 40% year-over-year to strata premiums province-wide;
-a 50% increase in Metro Vancouver;
-54% of strata properties experienced a premium increase of less than 30% compared to premiums the previous year;
-31% of strata properties saw increases in the 30%-50% range;
-9% faced year-over-year increases of 50%-100%; and
-6% saw increases in excess of 100% compared to the previous year.
And price pressures will continue with buildings that are considered to be higher risk expected to face the most significant increases as well as the possibility of not being able to obtain full, or in rare cases any, insurance coverage.
BC's finance minister, Carole James, told CTV News that legislation is on the way to address the skyrocketing strata insurance costs, but did not offer any details as to what exactly that will entail.
"It's clear there is no quick fix for this problem," James said. "It's important to recognize that the dynamics driving these increases are playing out in the private insurance industry-government does not set insurance rates or regulate pricing.
The new legislation is expected this summer as a first step to tackle the problem.