February, 2020 - Many strata owners are facing significant increases in insurance rates and deductibles. There are also multiple older buildings across the province struggling to find an insurer to renew their policy.
Potential buyers need to understand the insurance situation of strata units they’re looking at so they can make informed buying decisions.
People who already own strata units need to be aware of the financial risks they face. For example, if a plumbing incident caused $75,000 in water damage to a strata owner’s unit and the strata’s deductible was $100,000, insurance wouldn’t cover the claim. In this case, the owner could have to pay for the damages out of pocket, depending on the strata’s bylaws.
Read your strata insurance coverage carefully and make sure that you have the appropriate insurance coverage to protect your future if you are living in a strata home. Check in with your Insurance Broker as soon as possible to make sure you are adequately protected.