June 16, 2020 by THE CANADIAN PRESS
VANCOUVER – A report commissioned by the B.C. government says insurance premiums for condominium buildings have increased by as much as 40 per cent year over year while deductible costs have tripled.
Blair Morrison, chief executive officer of The B.C. Financial Services Authority, says the state of the insurance market for condo buildings is unhealthy.
He says despite large increases in the cost of insurance, the situation has yet to stabilize, likely meaning further increases for condo councils, known as strata councils in B.C.
The report says some councils are at risk of not being able to obtain full insurance coverage for the buildings they oversee.
Authority vice-president Frank Chong says B.C.’s earthquake risk and insurance losses over the past three years from numerous minor claims due to poor building maintenance are among the reasons for the higher costs.
Chong says a final report will be completed by this fall after consultations with the government, the industry and condo owners.
A representative for B.C.’s insurance industry was not immediately available for comment.
Feature image via iStock.com/Volodymyr Kyrylyuk