A man stands in the window of an upper floor condo in Vancouver on March 24, 2020. THE CANADIAN PRESS/Darryl Dyck

A man stands in the window of an upper floor condo in Vancouver on March 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Change made to insurance for B.C. condo owners amid rising premiums

Council CEO Janet Sinclair says the change will mean less price volatility

Insurance companies in British Columbia have agreed to end a pricing practice that has been identified as one of the key factors in skyrocketing property insurance premiums for condominiums.

Earlier this year, the B.C. Financial Services Authority said premiums have gone up by 40 per cent on average for a number of reasons.

Finance Minister Selina Robinson says an agreement to end so-called best terms pricing on Jan. 1 is a positive step.

Insuring multi-unit properties in B.C. often sees many insurers submit bids.

Under best terms pricing, the final premium paid by owners is usually based on the highest bid, even if most quotes were lower.

Blair Morrison, CEO of the financial services authority, says the change is an important step for long-term stability in the property insurance market.

Robinson was the housing minister in June when she introduced legislation to change the Strata Property Act and the Financial Institutions Act to bring more transparency to the insurance market.

The Insurance Council of B.C., the regulatory body for insurance agents in the province, says it will work with the industry to address the practice.

Council CEO Janet Sinclair says the change will mean less price volatility.

A financial authority report released in June says price pressures will continue on buildings considered to be higher risk and the insurance market for so-called strata properties was “unhealthy.”

It says insurers were accumulating losses mostly from minor claims, especially for water damage due to poor building maintenance and initial construction.

It says new building construction, building material changes and rising replacement costs have put added strain on the industry’s profitability.

Insurers are also reducing the amount of insurance they offer in B.C. because of excessive exposure to earthquake risk, it says.

READ MORE: B.C. changing rules as strata property insurance costs rise

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Condos

Just Posted

Terry Driver as he looked around the time of the killing of Tanya Smith and the attempted murder of Misty Cockerill in Abbotsford in October 1995. No current photos are available of Driver.
‘Abbotsford Killer’ Terry Driver denied parole, deemed ‘high risk’ to re-offend

Driver murdered Tanya Smith, 16, and seriously injured Misty Cockerill, 15, in 1995

Boats in the Fraser River launched from Barrowtown and Ft. Langley on May 12 to search for the missing fisherman. (Steve Simpson)
Boats search the Fraser River for missing Abbotsford fisherman

Anyone with ‘a boat, time, or a drone’ to help bring Damian Dutrisac home was asked to help

Mina Shahsavar is a fourth-year student in the bachelor of science in nursing program at University of the Fraser Valley and is an employed student nurse at Abbotsford Regional Hospital. (Submitted photo)
Nursing student in Abbotsford plans for career in critical care

Mina Shahsavar inspired during hospital stays as a child

The Canadian Forensic Health Corporation, made up of (left to right) Kirstin Simpson, Adrienne Fershau, Tiffany Kafka, Susan Short and Cole Bruce, are changing the game for the forensic nurse occupation. (Submitted)
Abbotsford nurses create Canadian Forensic Health Corporation

Tiffany Kafka, Susan Short, Kirstin Simpson, Cole Bruce and Adrienne Fershau teaching new generation

A pair of deer were spotted in Abbotsford on Tuesday (May 11) morning. (Submitted)
VIDEO: Pair of deer explore Abbotsford neighbourhood

Resident captures deer duo munching on foliage and then wandering off

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

Erik Christian Oun, who worked for the Coquitlam school district, has had his teaching licence suspended for half a year. (Pixabay)
Coquitlam teacher suspended after messaging students online, calling them ‘cutie’ and ‘sweetheart’

Erik Oun’s licence has been suspended for half a year, a decision made by the B.C. Commissioner for Teacher Regulation

Brad MacKenzie, advocacy chair for the ALS Society of B.C., says having research projects in the province allows people here to have access to cutting-edge treatments now being developed. (B.C. government video)
B.C. funds research chair for Lou Gehrig’s disease at UBC

Pandemic has cut off patient access to international projects

In this Monday, March 15, 2021 file photo a vial of AstraZeneca vaccine is pictured in a pharmacy in Boulogne Billancourt, outside Paris. Questions remained Wednesday about the future of the Oxford-AstraZeneca vaccine in Canada, as Manitoba limited use of the shot and Ontario announced it planned to save an incoming shipment to use as second doses. THE CANADIAN PRESS/AP/Christophe Ena, File
Questions remain about the future of the Oxford-AstraZeneca shot in Canada

More than two million Canadians have received AstraZeneca and 17 have been confirmed to have VITT

A Mountie issued B.C. RCMP’s first ticket for non-essential travel May 1. (Black Press Media files)
Driver ticketed, told to ‘return to Lower Mainland immediately’ by Vancouver Island police

The motorist was originally pulled over for driving-related offences May 1

Children walk back to their classroom while wearing masks and physical distancing at St. Barnabas Catholic School in Scarborough, Ont., in October, 2020. A group of B.C. teachers has issued an open letter calling for the relaxation of non-pharmaceutical interventions for children in B.C. schools. (Nathan Denette/The Canadian Press)
Group of B.C. teachers calls for easing of pandemic measures for students

Teacher group says ‘response to COVID is out of balance to the cost our youth are paying’

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read