Sunday, January 19, 2020 / by Derek Turci
You might have heard in the news lately that strata insurance rates are increasing all over the province. Although strata properties have been most affected, the truth is that rates for non strata properties could go up as well.
Why is this happening?
Let me start by saying I am by no means an expert on the insurance industry. I have done research to give you a basic understanding, but I'm certain there are many other factors at play here. There are a number of reasons for these sudden increases but here are a few.
1) The high price of BC real estate: BC strata properties have very high valuations resulting in high repair/replacement costs. This has resulted in only a handful of insurers willing to take on BC strata properties.
2) Increasing risk of natural disasters such as fires and earthquakes: Insurers take out insurance against the policies they sell and this travels up the insurance totem poll to an interna; ...