Headlines from the high cost of strata insurance

There has been a lot in the news about staggering insurance premiums for condo owners, and it’s not too much of a stretch to say this could have an impact on the real estate market.
Last week, the BCREA made news by explaining how it is taking steps to help potential buyers be prepared for everything concerning condo insurance.
It has:
• provided a new Strata Insurance Clause in the Contracts of Purchase and Sale used by realtors
• asked the government to add proof of insurance to its documents so that all buyers are protected
• committed to participate next month in a forum led by the Insurance Bureau of Canada
According to the BCREA, the reason strata insurance premiums have skyrocketed is in part because of a building’s size and construction materials used, claims history, where a building is located, the number of unoccupied units or tenants, the high value of real estate, lack of regular maintenance and the high cost of repairs.
For more about this, watch next week for the March issue of News From Nexus, or if you’re not already receiving the monthly newsletter, sign up here.