Provincial government changes strata insurance regulations
The provincial government announced changes to the Financial Institutions Act on September 13 intended to address rising strata insurance costs that have affected strata owners throughout the province.
Here’s a summary of the changes:
- Effective immediately, referral fees to strata property managers from strata insurance transactions are prohibited.
- Effective November 1, strata insurers and agents must provide 30 days advanced notice to strata corporations if they intend to not renew an insurance policy or make material changes to the policy.
- Strata insurance agents will also be required to disclose their commission amount, or a reasonable estimate, to strata corporations. Failing to meet these requirements can result in penalties of up to $25,000 for an individual or $50,000 for a corporation.
These changes follow the BC Financial Services Authority’s June report that found strata premiums have risen by approximately 40 per cent across the province year-over-year and deductibles have risen as well, sometimes with triple-digit increases.