Close X
Tuesday, January 14, 2025
ADVT 
National

Change made to insurance for B.C. condo owners

Darpan News Desk The Canadian Press, 01 Dec, 2020 10:19 PM
  • Change made to insurance for B.C. condo owners

Insurance companies in British Columbia have agreed to end a pricing practice that has been identified as one of the key factors in skyrocketing property insurance premiums for condominiums.

Earlier this year, the B.C. Financial Services Authority said premiums have gone up by 40 per cent on average for a number of reasons.

Finance Minister Selina Robinson says an agreement to end so-called best terms pricing on Jan. 1 is a positive step.

Insuring multi-unit properties in B.C. often sees many insurers submit bids.

Under best terms pricing, the final premium paid by owners is usually based on the highest bid, even if most quotes were lower.

Blair Morrison, CEO of the financial services authority, says the change is an important step for long-term stability in the property insurance market.

Robinson was the housing minister in June when she introduced legislation to change the Strata Property Act and the Financial Institutions Act to bring more transparency to the insurance market.

The Insurance Council of B.C., the regulatory body for insurance agents in the province, says it will work with the industry to address the practice.

Council CEO Janet Sinclair says the change will mean less price volatility.

A financial authority report released in June says price pressures will continue on buildings considered to be higher risk and the insurance market for so-called strata properties was "unhealthy."

It says insurers were accumulating losses mostly from minor claims, especially for water damage due to poor building maintenance and initial construction.

It says new building construction, building material changes and rising replacement costs have put added strain on the industry's profitability.

Insurers are also reducing the amount of insurance they offer in B.C. because of excessive exposure to earthquake risk, it says.

MORE National ARTICLES

Horgan recommits to $10 a day child care plan

Horgan recommits to $10 a day child care plan
The plan was part of the New Democrats' 2017 platform but Horgan says the minority government couldn't fully implement it because it didn't have support from its Green partners.

Horgan recommits to $10 a day child care plan

Greens reinstate Meryam Haddad for leadership

Greens reinstate Meryam Haddad for leadership
The party's leadership committee says it has overturned its Tuesday decision to expel Haddad from the race for violating the party's rules.

Greens reinstate Meryam Haddad for leadership

Toronto councillor loses bid to keep position

Toronto councillor loses bid to keep position
Jim Karygiannis faced removal from office after exceeding a spending limit by about $25,000 during the 2018 election.

Toronto councillor loses bid to keep position

Ontario changes course on COVID-19 testing

Ontario changes course on COVID-19 testing
Testing for asymptomatic residents is available at up to 60 pharmacies by appointment starting on Friday.

Ontario changes course on COVID-19 testing

N.S. appeals court hears assisted death case

N.S. appeals court hears assisted death case
The woman is appealing last month's decision by Nova Scotia Supreme Court Justice Peter Rosinski who rejected her request for a temporary injunction against her husband.

N.S. appeals court hears assisted death case

CRA website remains limited after hack

CRA website remains limited after hack
The CRA is "working diligently to restore access to all services as quickly as possible," spokeswoman Sylvie Branch wrote in an email.

CRA website remains limited after hack