THE Province introduced on Sunday that adjustments to strata insurance rules will assist handle the rising price of strata insurance in B.C. and bring additional transparency to the business.
Changes to B.C.’s Financial Institutions Act:
* Effective November 1, amendments would require insurers or insurance brokers to present 30-day superior discover instantly to strata firms of their intention to not renew an insurance coverage or of any materials adjustments to the coverage. This change ensures strata firms have superior warning of price will increase and has time to search different insurance choices if desired.
* As properly, insurance brokers will probably be required to disclose their fee quantity, or an inexpensive estimate, to strata firms. Insurers who fail to meet these disclosure necessities face penalties of up to $25,000 for a person or $50,000 for a company.
* Lastly and efficient instantly, referral charges to strata property managers from strata insurance transactions are prohibited.
These adjustments will bring additional transparency to the strata insurance market and assist strata firms keep their monetary sustainability by offering them the data they want to make knowledgeable selections about their insurance wants.
These amendments adopted the interim report launched by the B.C. Financial Services Authority (BCFSA) in June 2020. The report discovered that strata premiums have risen by roughly 40% all through the province on a year-over-year foundation, with deductibles experiencing up to triple-digit will increase over the identical interval.
The BCFSA will probably be releasing their closing report and suggestions on the rising prices of strata insurance in B.C. in fall 2020.