We regret to be the ones to share this bad news if you are not already aware, so please try not to shoot the messenger. Strata Councils and their respective Ownership groups need to be aware that ALL Strata Corporations in and around the Lower Mainland (i.e. all of our clients) should expect to see very significant increases in the premiums they pay for insurance as well as deductibles. This is a difficult topic to distill into a few bullet points and we will attempt to flesh out the new reality below, but here are some high (or low) lights:
- Premium increases between 20-80% are common, with some outliers on either side;
- Deductibles are increasing significantly- $100,000 is becoming the norm for water damage claims in high-rises;
- This is the result of economic factors both micro and macro in scope;
- You are not alone- this is impacting all Strata Corporations in the Lower Mainland, all Property Management firms and all insurance brokerages;
- Owners found to be “responsible” for a loss will be liable for these new deductibles under most Strata Corporation bylaws;
- We do not profess to provide expertise on insurance, but offer our update below- this has proven to be a very difficult month for Property Managers who are trying their best to assist their clients during what is our busiest time of an always busy year and we appreciate your understanding that this is not of our making and that there is zero money being made by our brokerage related to insurance commissions or the extra work involved in policy renewals. We are offering this memo in our efforts to educate Strata Councils and Ownership groups about the present realities and challenges of the Strata insurance market and will continue to do so at every opportunity.