Many of you were probably anxiously awaiting the government of BC's first steps to help strata owners in the midst of the strata insurance crisis. Like us, many of you would have been disappointed with the proposed actions. The full release is here
The Anchor Pointe Insurance Task Force's response to the government of BC's first steps for addressing strata insurance:
We're pleased to see the government of BC kept it's commitment to act in this challenging time for BC's 1.5 million strata residents.
Given how big this problem was allowed to get, we expected more substantial solutions by now. Strata owners can't continue to absorb these exorbitant costs while waiting for the government to get caught up on the issue.
We need financial relief now for thousands of strata home owners who have been, and will continue to be, forced to pay unmanageable costs for insurance.
We need the government to get aggressive with regulation around the insurance industry and create a competitive landscape without passing the costs onto strata owners.
These first steps do very little, if anything, to bring premiums down for well managed strata corporations. It reinforces our concern the government is basing decisions on the assumption poorly managed stratas are the ones struggling with large increases to premiums, which we know is inaccurate.
The recommendations highlight a long standing problem around transparency and concerning business practice in the strata insurance industry.
While the intent of some of these recommendations may make it easier for strata corporations to secure insurance, they make it more financially difficult for strata owners.
Strata owners can't pay the price for lack of regulation and oversight by the government all these years which has led to an unaffordable and unsustainable housing market.
We continue to urge the government to get balanced information from stakeholders and get real stories around financial impact for strata owners. We believe the information government is basing decisions on is not reflecting the severity of the situation.
We are glad CHOA's recommendations around commissions were implemented.
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CHOA's applauds the government's efforts saying:
"The proposed elimination of commissions paid to parties providing strata management services is a critical step in addressing the high level of commissions and fees being incurred on policy renewals, many of which are undisclosed to the strata corporations.” said Tony Gioventu, CHOA Executive Director.
CHOA's full statement can be found on their website.
Also, in case you missed it, the proposal by the BC Liberal Caucus
Some media coverage:
B.C. tables 'first steps' legislation to try to tackle rising strata insurance costs
https://www.cbc.ca/news/canada/british-columbia/bc-strata-insurance-1.5624051
Here are B.C.'s plans to combat a sudden spike in strata insurance
https://bc.ctvnews.ca/here-are-b-c-s-plans-to-combat-a-sudden-spike-in-strata-insurance-1.4996321
B.C. to end referral fees to help ease sky-high strata insurance costs
https://globalnews.ca/news/7097959/strata-insurance-changes-first-step/
B.C. proposes first steps to address sky-high condo insurance
B.C. tables legislation to help reduce strata costs
https://www.citynews1130.com/2020/06/23/b-c-tables-legislation-to-help-reduce-strata-costs/