📋 Tender Overview
The Government of British Columbia is taking action to help stratas better mitigate the rising costs of insurance.Actions include bringing more transparency to the strata insurance industry closing loopholes related to depreciation reports ending referral fees paid to property managers and giving strata owners and corporations the tools they need to do their part.The rising cost of strata insurance is a major financial pressure facing thousands of British Columbians during an already challenging time said Carole James Minister of Finance. This is an extremely complex issue playing out in the private insurance industry but that doesnt lessen our governments commitment to doing what we can to make the situation better. Everyone has a role to play in returning the market to balance and today our government is taking a first step with the understanding that we will take further action as needed.Through amendments to the Strata Property Act and Financial Institutions Act as well as associated regulatory changes government willend the practice of referral fees between insurers or insurance brokers and property managers or other third partiesset out clear guidelines for what strata corporations are required to insure to help strata councils make informed decisions on their insurance policiesrequire strata corporations to inform owners about insurance coverage provide notice of any policy changes including increasing deductibles and allow stratas to use their contingency reserve fund when necessary to pay for unexpected premium increases andprotect strata unit owners against large lawsuits from strata corporations if the owner was legally responsible for a loss or damage but through no fault of their own.The legislation also paves the way for government to make further regulatory changes toidentify when stratas are not required to get full insurance coveragestrengthen depreciation reporting requirements including limiting the ability to use existing loopholes in the legislation to avoid completing depreciation reportschange the minimum required contributions made by strata unit owners and developers to a strata corporations contingency reserve fundrequire brokers to disclose the amount of their commission which has been reported to be at times in excess of 20 andstrengthen notification requirements to strata corporations of changes to insurance coverage and costs or an intent not to renew. These regulatory changes will be made after further consultation with strata community stakeholders.We understand the difficulty people living in stratas face when they experience a large increase in insurance costs or have challenges finding insurance at all said Selina Robinson Minister of Municipal Affairs and Housing. This legislation is a first step to help strata corporations now as we continue to work on this complex issue. I look forward to the BC Financial Services Authoritys final report in the fall which will help identify further actions government can take to support people living in strata properties. Governments actions were guided in part by input from key stakeholders includingCondominium Home Owners Association of BCVancouver Island Strata Owners AssociationInsurance Brokers Association of BCInsurance Bureau of CanadaInsurance Council of BCOffice of the Superintendent of Real EstateReal Estate Council of BCMortgage Brokers Association of BCBC Real Estate Association andthe interim report of the BC Financial Services Authority.The Ministry of Municipal Affairs and Housing and the Ministry of Finance will also review the final report from BC Financial Services Authority in the fall to determine what further changes government can make to help lower strata insurance costs for people.
