“People living in stratas deserve to have peace of mind that their strata corporation has appropriate reserves to do routine maintenance and keep strata insurance costs down,” said Ravi Kahlon, Minister of Housing. “The overwhelming majority of stratas are doing just that, but a small number of strata corporations that are underfunding their contingency funds and putting owners at risk of surprise fee hikes and higher insurance costs. While the vast majority of strata corporations are already meeting these requirements, we’re ensuring that those outliers are taking steps to protect themselves.”

In 2020, BC introduced changes to the Strata Property Act to help stratas better manage strata insurance costs, including enabling these regulatory changes. Strata corporations in BC are required to have a contingency reserve fund (CRF) to pay for infrequent common expenses, such as maintenance work and emergencies. These new rules will increase the minimum amount that developers and strata corporations are required to contribute to a CRF, from 5% to at least 10% of the annual operating expenses every year. These changes will take effect on November 1st, 2023.

The new minimums were set with the advice of strata managers and homeowner representatives. According to strata industry experts, the vast majority of approximately 34,000 strata corporations in the province exceed this minimum amount and will not be affected by this change.

The Province is also enacting changes to the Form B Information Certificate. A summary of the strata corporation’s insurance coverage must be included in the form, effective April 1, 2023. This will make it easier for prospective buyers and strata owners to know whether the property is adequately insured, and the amount of insurance individual owners need to purchase.

Developers are required to include a CRF contribution in a new building’s interim budget, which under these changes will need to be equal to at least 10% of the operating expenses. This will prevent developers from advertising unrealistically low strata fees to prospective buyers and avoid unexpected increases in strata fees in the building’s first years.

For the small number of strata corporations that need to contribute more funds to their CRF to meet the new minimums, this will reduce their risk of strata insurance claims and premium increases, and significant special levies on short notice.

For the most part, this change will have impact to strata owners since most Strata Corporations are already meeting the 10% CRF contribution. That being said, for the Stratas that were underfunding their CRF, this may have an impact on monthly strata fees to boost up the minimum contribution to the CRF. In terms of insurance, the goal of the amendment is actually to reduce the likelihood of the need to use insurance. If proper maintenance is adhered to, the hope is that this will reduce claims linked to poor maintenance of properties. If insurance claims go down, insurance premiums normally are able to remain static without sizeable increases like we have been seeing in recent years. So, overall, the amendment by the province is a positive one for insurance.

At Leaders Insurance, we have a team of skilled brokers who help clients daily with finding the best rates for their home insurance needs. As a result, we have developed longstanding relationships with our clients for home insurance. We take the time to understand your needs and can help you as you find what is right for you. We look forward to assisting you with all of your insurance goals and requirements. Contact Us today.

The rate of flooding has risen over the past five years in BC and this has created a lot of upset and uncertainty for may people living in the Lower Mainland. The issue is that a flood that moves into a home, can create a lot of damage. No one wants to see water entering their home but living in BC requires being a little bit prepared for this happening.

In Canada,flooding is the most common and costly natural disaster, causing approximately $1.5 billion in damage to households, property, and infrastructure annually, with residential property owners bearing approximately 75% of uninsured losses each year.

Many homeowners are unprepared for flooding because they lack critical information thanks to murky real estate rules, incomplete floodplain maps and an insurance industry pulling back from high-risk areas, a Marketplace investigation has found.

The IBC estimates that anywhere from six to 10 per cent of Canadian homes are currently uninsurable due to flooding and that estimate could go up as more insurance companies update their risk assessments to account for the rising threat of climate change.

According to a 2019 federal government report, Canada’s climate is warming at double the rate of the rest of the world, and the IBC estimates that currently 1 in 10 Canadian homes is at high risk of flooding and some face possible repeated flooding over the next 20 years.

The recent flooding in British Columbia has made the issue of flood insurance coverage top of mind for many homeowners, as some residents there, unable to find coverage, turn to provincial disaster assistance, and others assess what coverage they have as the cleanup begins.

Insurability is eroding in Canada as the prices are rising so much every year. For the average family in BC, it is unaffordable to buy a home as well as cover insurance and other expenses. The rising cost of insurance is down to the higher amount of claims that are occurring on an annual basis. Climate change has caused this rise in flooding to be a new norm. This in itself is worrying as it means a greater chance for an incident at home but also a rise in premiums is likely something that is here to stay.

When it comes to insurance, you need to take the time to ensure you have all the coverage you need. If floods are worrying you, it is imperative that you checked your current policy and then request a review so you can ensure you are protected but also to receive further guidance on the policy details. You need to work with someone who you can trust and can align the insurance you get with what you truly need in BC right now.

At Leaders Insurance, we have a team of skilled brokers in the home insurance area. If this topic makes you wonder what your policy includes, we welcome your call so we can review your existing policy and ensure you have adequate coverage in the event of a flood. Don’t be left without the coverage you need when you need it most. We take the time to understand your needs and can help you as you find what is right for you. We look forward to assisting you with all of your insurance goals and requirements. Contact Us today.

Insurance policies are designed to protect the purchaser from unexpected losses.  Strata insurance policies are no different; they are designed to protect owners against liability for property damage and bodily injury, and in British Columbia all stratas must obtain and maintain that coverage. While insurance policies have many features, two of the critical ones are the policy premium (how much you pay up front) and the policy deductibles (how much you pay when making a claim, which often varies depending on the nature of the loss).

As many of you know, in recent years, the strata insurance market has seen premiums and deductibles skyrocket, and according to the BCFSA, that’s unlikely to change anytime soon.  For strata owners, the hike in premiums impacts you directly through rising maintenance fees, but what about the impact of the change in deductibles?

The higher deductibles will affect you in two ways:

1. Your strata will no longer be able to make claims that would have been covered under your previous policy deductibles.

For example, if your strata previously had an insurance policy with a $20,000 deductible and experienced a loss of $70,000 due to a water leak, you used to pay the $20,000 deductible and the insurer would cover the balance. Now, assuming your deductible has risen to $75,000, all $70,000 of the water loss would need to be paid by your strata.

This means that when something does go wrong, you are less likely to be able to rely on your insurance to help.

2. You will personally pay more for strata insurance for your condo or townhouse.

On top of the higher premiums you pay via your maintenance fees, your own personal insurance policy costs will rise.  This is down to the fact that in addition to covering your personal property and any improvements to your unit – used to be based on covering the strata’s previous deductible if the loss originated in your unit. This means that your insurer’s exposure was your loss plus the strata’s deductible.  Now, your strata insurance policy should cover the new strata deductible, which for purposes of example may now be $75,000.  With some strata deductibles rising to $250,000 or more, some owners can’t secure enough coverage at any cost. The result of this is that your own policy premiums are going to rise (and it’s likely your personal deductibles will rise too).

The bottom line for owners of strata properties is that until the market conditions change, they’ll be paying more – much more – for both their strata’s insurance and their own.

Overall, home insurance is rising and this is down to the rise in claims for a range of incidents in recent years – especially fires and floods in BC. Additionally, with the surging cost of living insurance costs are also rising. So, insurance will rise even if you are in a detached home.

For a detached home, you are covering the cost of home insurance for the entire property. In a strata arrangement, the strata is buying insurance for the entire strata to cover the cost of repairs to the common “envelope” as well as any liability claims. This is divided between the strata owners and the cost is added to the monthly fees strata owners pay to be part of that strata. As well, each homeowner is responsible to obtain personal home insurance for their property.

Should the rising cost of strata deductibles and home insurance in BC play a part in the decision of whether to buy a detached or strata property? The answer to this question is likely that it would not. In the times we currently live in, the primary determining driver of the type of property purchased is affordability. Home insurance is an element to consider and can be costly – but it can be an ongoing factor to consider for both detached and strata properties.

When purchasing a property, it is most important to find a property that meets your needs and is a property that you will be able to afford even if costs rise. As we are seeing now with the high inflationary times and the rising cost of living, many people are in a position where they are unable to meet their basic needs. By ensuring you have a comfortable emergency fund in place and room to bear higher expenses including insurance, you will be in a better position to manage a sudden rise in household costs such as home insurance.

At Leaders Insurance, our brokers are here to assist you with finding ways to manage your home insurance and find the best policy and rates for your needs. We take the time to understand your needs and can help you as you navigate the everchanging property market when it comes to home insurance. We look forward to assisting you with all of your insurance goals and requirements. Contact Us today.

The bottom line is that during short term rental periods of time, you will want to ensure that your belongings are protected. Whether accidental or other, the reality is that during the timeframe your place in being rented out, damages or even thefts can occur.

 To help offset any financial losses, you will also want to look into adding in owner’s contents insurance. Should any of your personal items need to be replaced as a result of: theft or vandalism, as well as fire damage, etc., peril coverage can be provided to aid with these types or repair or replacement costs.

Loss of rental income is also a definite area of consideration as a part of your short term rental policy. In the event you lose out on income during the potential rental period, however a rental agreement has fallen through, then including this type of coverage can also help to secure your income.

Especially with multiple groups will be coming and going during shorter term rentals, Liability insurance is one aspect of coverage you will also want to consider. Should an individual be injured on/as a result of your property, this can lead to very high medical and legal expenses for you, as the landlord. Since third party property and bodily injury claims can be very damaging to your personal income, having insurance to help cover these costs will be an extremely important part of your short-term rental package.

In the end, short term rental insurance is not always as easy to come by, since these unique set of circumstances may pose some additional risk. With that being said, there is a growing market for these types of rental arrangements, and as result, select insurance companies are keeping these options available for short term rental property owners across Canada.

Naturally, many parents will be wondering whether these devices are covered under their previous home insurance policies. To answer this question, it is important to know that it will likely depend on when and where, and how these devices are being used.

For instance, while a range of personal belongings, including electronics are covered under the main home insurance policy, the use of these electronic away from the home may change this scenario.

Peril Insurance, for example, can help protect items lost or damaged in the home due to events such as fire or flooding, as well as theft and vandalism. However, this initial home policy may not be valid when it comes to covering replacement costs for items that have been damaged or lost while being used at school or on the way to and from school.

With that being said, it will most likely be necessary to purchase additional coverage for this type of expense. With the extended coverage for personal contents, specifically for electronics used outside of the home, these costs, up to a certain value, can be claimed depending on the extent and nature of the damage to these items.

This will typically include, devices that are either lost or stolen, as well as those that are subjected to accidental damages. In some cases, accidental damage coverage will also be its own specific add-on to the current policy.

It is also important to factor into the situation of whether a child is attending day school or attending university or college away from home. If your child, for example, is moving away for a school term, however it is not considered a permanent move, many home insurance policies can be adjusted to protect the electronics they are using while away at post-secondary institutions.

Alternatively, if your child moves away on a more permanent basis, then it is more than likely that they will need to look at purchasing renters’s insurance to support the coverage of these types of devices.

In the end, it is commonplace that a current home insurance policy will need to be re-evaluated to include extra contents coverage for items such as these electronics, especially those that are being used outside of the home.

If you find that your child will be using electronics away from home this school year, it is recommended that you discuss your options with an insurance agent who has direct knowledge of these policies.

At Leaders Insurance, we are happy to re-visit your existing home insurance package with you, in order to help you feel more assured that your coverage meets all of your home contents needs, this school year and into the future.

As mentioned, undergoing a major renovation will require additional considerations. First and foremost, your home may turn into a construction zone of sorts, and this might mean there will be building items and equipment left on your property during this time. If this is case, then having extra insurance for instances such as vandalism or theft may be worth an added precaution and in turn, an adjustment to your insurance may be warranted.

Secondly, you may also want to factor in business liability or general liability insurance as this will help to cover professional contractors who are working on your property. In the event, the contractor’s actions lead to damages to your property or the property of others, this specific type of coverage can help you cover these costs.

Another scenario worth considering, is whether you will need to move out of your home during the renovation process. If this is the case, and if you are not residing in the home for more than 30 days, you may also want to look into whether or not you need to obtain extra coverage known as a Vacancy Permit. If necessary, this added insurance peace can help keep your home covered during this timeframe.

Finally, adding onto your home can also increase the value of your home. As a result, it may be necessary to add on more insurance to cover needs such as replacement costs in a variety of situations. Should your home, for example, require repairs due to water and fire damage, to mention a few, you are ensuring your have enough coverage to align with these types of unexpected expenses.

In the end, when you are in the beginning stages of planning to renovate your home, it is best to get in touch with your home insurance agent to find out more about what additional insurance may be required.

To ensure you have right coverage, Leaders Insurance can assist you in identifying your home insurance renovation needs. We look forward to helping you make your home renovations dreams come true.