With the ever-changing nature of global insurance markets and the related moving pieces leading to the local trend of rising premium costs, we have been looking to find unbiased third party articles and information to pass along to keep our clients informed and hopefully help make some sense of this very significant and mandatory operating cost. In this article, we offer some commentary on the insurance renewal process along with some information on the 2013 outlook for Strata Corporation Insurance in British Columbia.
There were a number of news stories published over the past week regarding a very common practice of Strata Corporations. The gist goes something like this: most buildings have bylaws which permit the Strata Council to charge back the cost of insurance deductibles (and in practice, amounts below the insurance deductible) to the owner of a suite where damage originates. The most common example of this is when water flows from one suite to others. Some feel that this practice is unfair, but it is very common.