November 30, 2023

The Queens County Citizen

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BC amended the law in an effort to address sky-high condo and townhouse insurance

BC amended the law in an effort to address sky-high condo and townhouse insurance

The BC government has announced regulatory changes aimed at bringing more transparency to condo insurance premiums, which have risen to 40 per cent.

The Ministry of Finance states that insurers or insurance agents must give condo or “strata” companies 30 days’ notice if they do not want to renew the policy or make any changes.

This ensures that struts have an early warning of a cost increase to obtain other insurance options if they wish.

Referral fees for strata property managers from insurance transactions are also prohibited, effective immediately.

Legislative amendments mean that insurance agents are required to disclose their commission amount or reasonable estimate to corporations.

Failure to meet that requirement could result in a fine of up to $ 25,000 per person or up to $ 50,000 per corporation.

The government says the changes will provide stability and competition

The changes “will help strata corporations maintain their financial stability by providing them with the information they need to take information about their insurance needs,” the finance ministry said in a statement.

Councils consisting of stratos, or condo, and townhouse owners are calling for the province to step in as insurance costs have risen to unbearable levels.

Government-appointed report It was released in June that the deductions tripled as insurance premiums increased.

Finance Minister Carol James then said commissions could be as high as 20 per cent of the cost, but terminating referral charges and disclosing commissions could increase competition and lead to lower rates.

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The BC Financial Services Authority is expected to release its final report in the fall.

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