The BC government is taking its first steps to mitigate soaring strata insurance costs by introducing a bill to amend the Strata Property Act and Financial Institutions Act. 

The government wants to make the strata insurance industry more transparent, close depreciation report loopholes, and end referral fees paid to property managers, while giving strata councils more tools to deal with insurance. 

If passed, the changes will:

  • end the practice of referral fees between insurers or insurance brokers and property managers or other third parties; 
  • set out clear guidelines for what strata corporations are required to insure to help strata councils make informed decisions on their insurance policies; 
  • require strata corporations to inform owners about insurance coverage, provide notice of any policy changes, including increasing deductibles, and allow stratas to use their contingency reserve funds when necessary to pay for unexpected premium increases – this was recommended by the Real Estate Board of Greater Vancouver (REBGV) and the BC Real Estate Association (BCREA); and 
  • protect strata unit owners against large lawsuits from strata corporations if the owner was legally responsible for a loss or damage, but through no fault of their own. 

The new legislation will also give the government the ability to:

  • end the practice of referral fees between insurers or insurance brokers and property managers or other third parties; 
  • set out clear guidelines for what strata corporations are required to insure to help strata councils make informed decisions on their insurance policies; 
  • require strata corporations to inform owners about insurance coverage, provide notice of any policy changes, including increasing deductibles, and allow stratas to use their contingency reserve funds when necessary to pay for unexpected premium increases – this was recommended by the Real Estate Board of Greater Vancouver (REBGV) and the BC Real Estate Association (BCREA); and 
  • protect strata unit owners against large lawsuits from strata corporations if the owner was legally responsible for a loss or damage, but through no fault of their own. 

Consultation with REALTORS®

The government specifically named BCREA, which represents Realtors across the province, as a key stakeholder in the creation of the new legislation.

Since February, Realtors have made recommendations to the provincial government to help deal with rising insurance costs.