For condo owners and renters, insurance companies are increasing insurance premiums which is worrisome with huge bills coming their way. The cost of the strata’s building insurance is being passed down to homeowners through their maintenance fees and if the unit is rented then it is passed on again to the tenants.
Insurers are strict about their risk exposure and as a result, poorly maintained or older strata building face losing their insurance coverage. As a result, this could be mean that if there was damage or major event to occur such as fire, flood or earthquake they would lose everything.
The reason for this rate increase is due to insurance firms having issues making ends meet as well as the fewer number of insurers in the market. These two reasons have had an effect on the premiums. With the lack of competition, insurance firms are also picking and choosing which building they insure and ones they don’t.
The solution for this would be for more companies to enter the marketplace and start competing with one another and the prices will come down.
Source: Vancouver Courier