Monday, September 28, 2020
Home Insurance B.C. amends law in effort to address sky-high condo and townhouse insurance

B.C. amends law in effort to address sky-high condo and townhouse insurance

VICTORIA — The B.C. authorities has introduced regulatory modifications aimed toward bringing extra transparency to condo insurance premiums which have risen by as a lot as 40 per cent.
The province’s ministry of finance says efficient Nov. 1, insurers or insurance brokers might be required to give 30 days’ discover to condo or “strata” companies in the event that they intend not to renew a coverage or to make any modifications.
It says that might guarantee stratas have advance warning of value will increase in order to search different insurance choices if they want.
Referral charges to strata property managers from insurance transactions are additionally prohibited, efficient instantly.
The legislative amendments additionally imply insurance brokers might be required to disclose their fee quantity, or an inexpensive estimate, to the companies.
Those who fail to meet that requirement face penalties of up to $25,000 for a person or $50,000 for an organization.
The modifications will “help strata corporations maintain their financial stability by providing them with the information they need to make informed decisions about their insurance needs,” the ministry of finance stated in a launch.
Stratas, or councils involving condo and townhouse homeowners, have been calling on the province to step in as insurance prices have risen to unaffordable ranges.
A government-commissioned report launched in June discovered deductibles elevated by triple digits as insurance premiums rose.
Finance Minister Carole James stated then that commissions may have been 20 per cent of the fee, however ending referral fees and disclosing commissions would improve competitors and could lead to decrease charges.
The B.C. Financial Services Authority is predicted to launch its ultimate report in the autumn.

The Canadian Press
Original Story posted by CHEK Editor

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