Surge in Strata Insurance Premium Has Driven the Government to Intervene

Surge in Strata Insurance Premium Has Driven the Government to Intervene

    March 10, 2020

    Many British Columbia Residence is facing another problem this year, which is the surge in strata insurance premium. Early 2020, a report says a one year old 26-storey apartment in Abbotsford received quote of $588,000 compared to $66,000 last year. A 780% increase in insurance premium. Another case in Langley where the insurance deductible jumped from $5,000 to $25,000.

    We continue to receive reports about substantial surge in insurance premium throughout the year of 2020. The increase averaged between 50%-300% in British Columbia. Insurance companies claim that the hike was due to natural occurrences and nobody is willing to underwrite at a lower cost. This shouldn’t impact British Columbia as it has always been and did not experience natural disaster in recent years. It is absurd that a one-year old building should be hit with a 780% increase.

    Under the B.C. Strata Property Act, it is mandatory for strata to purchase full building insurance. The additional cost would mean approximately $200-$500 increase on monthly strata fee. The cost is too much for residence to bare.

    B.C Liberal proposed the Strata Property Amendment Act:

    • Add a new "standard unit" definition to better clarify the responsibilities of strata building insurers versus individual unit owners.
    • Require a strata corporation to provide a copy of proof of insurance so that buyers know the terms, premiums, amounts of deductible and coverage limits.
    • Property and insurance renewal terms be provided at least 30 days in advance to give strata corporations more notice of any impending increases.
    • Require unit owners to buy liability insurance to make sure individuals are able to cover the costs of a major water leak, for example, since strata insurance only covers common areas.

    Although they’re also looking into financial incentive for strata building maintenance, the proposed bill doesn’t solve the issue rather give more time to adjust and pass the cost to individual owner. We will need bills to cap the rate or discussion with private insurance companies to make the insurance reasonable. Vancouver is already one of the most expensive cities to live in. The cost will likely be passed to those who rents and barely making a living.

    Yoyoe Lu

    Founder and managing principal

    Yoyoe is the founder and managing principal of Claridge. She was ranked one of Vancouver’s top real estate agents. Currently, Yoyoe is our strategic mind leading the team to success. Her affiliation with industry professionals put her ahead of our competitors. Yoyoe is also part of the Rotary Club of West Vancouver, Canadian Homebuilders Association, Urban Land Institute and Urban Development Institute.

    Ashley Osborn

    Development Site and Investment Specialist

    Ashely is our lead land and investment advisor. He has been consistently featured in the annual top 100 real estate deals of British Columbia ranking. With over $15 billion worth of domestic and international real estate investments under his belt, Ashley is one of the top agents in the province. His 20 years of real estate and financial experience make him a master in negotiation and acquisition.

    Patricia Wong Chong

    Investment and Leasing Specialist

    Patricia is our investment and retail leasing advisor. Her experience in brokerage and market research analysis has helped her comprise over $550 million in commercial real estate transactions. Patricia is responsible, detail-oriented, and professional. Her strong work ethic and positive attitude have led her to surpass all her competitors.

    Schumann Li

    Land Assembly & Residential Specialist

    Schumann is a top-producing realtor in the Lower Mainland with more than 30 years’ experience. Over the years, Schumann hasn’t just garnered awards, but the trust of countless customers. Her clients continually refer to her outstanding professionalism, work ethic and poise.

    Wendy Kaip

    Sales Associate

    Whether it’s decoding city policies, strategizing relocation plans, home sellers looking for a trustworthy advisor to unlock their property’s maximum potential- Wendy is here to help every step along the way.

    Prior to real estate, Wendy spent over a decade in the mining industry with her attention to detail, keen negotiation skills, extensive network and strong reputation for getting the deal done, bringing endless value to her current real estate clients.

    Whether you are thinking about selling to a developer, or have more questions about commercial real estate, Wendy invites you to connect, to see how she can utilize her expertise and team to help create value and maximize your real estate goals.

    Simon Chan

    Managing Broker

    Simon is the managing broker of Claridge Real Estate Advisors Inc. His expertise has helped our agents resolve many difficulties. Not only is Simon knowledgeable with real estate legislation, but he is also very detail orientated. With Simon on our team, our agents are confident to conduct businesses and will always get the support they need to ensure they’re not walking on dirty water.

    Frank Zhou


    As the analyst of the company, my key job is to help brokers to find marketable clients and locate feasible development sites by collecting and analyzing up-to-date market transaction data and conducting target market and property-level research. Meanwhile, I am also in charge of maintaining the company’s property database to ensure accuracy and comprehensiveness and continuously upgrading the level of knowledge by staying up to date with hot topics, and market trends, and incorporating findings into everyday work. Before joining the company, I worked for CR Group as a real estate investment manager, focusing on capital raising, equity and debt financing, acquisition and renovation. I hold 2 master’s degrees, one in Housing Management and the other in Economics.