IBC shares policy recommendations to address B.C.'s strata insurance issues

The Insurance Bureau of Canada (IBC) has released its policy recommendations to help address B.C.’s concerns about the affordability of its strata insurance.

An official release from the bureau revealed that its recommendations builds on the work of its National Commercial Insurance Task Force. The task force brings together insurers, government, and other stakeholders to create recommendations in order to keep insurance pricing reasonable across Canada.

Read more: IBC creates commercial task force

IBC’s recommendations are as follows:

• Mandatory education for strata board councils – Educating strata board directors on best practices would enable them to operate their stratas by maximizing resources and reducing risks.
• Review and implement Building Code changes to reduce risk – Amend building codes to ensure buildings have the appropriate measures to prevent water damage and other losses in both new and existing stratas.
• Change depreciation report requirements for strata corporations – A depreciation report (also called a reserve fund study) would provide a guide for strata corporations to set their short, medium, and long-term maintenance goals.
• Define a standard strata lot in the Strata Property Act – A definition that clearly determines what strata lot owners are responsible for, and what the corporation is responsible for; this could reduce the number of claims made by stratas in B.C.
• Implement restrictions on loss assessments on strata lot owners – A monetary cap for deductible assessments and non-insured loss assessments. This could help strata lot owners in accessing affordable insurance.

IBC said in its release that there are more than 35,000 strata corporations in B.C., and that strata insurance costs in the province have increased by 35% on average.