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Protecting your client from new condo insurance rates

Since we published our story about the exorbitant rise in condo insurance a month ago, there has been a lot of public discussion about the effect it may have on some condo buyers, particularly those looking at older properties.

BCREA has created a new Strata Insurance Clause in Contracts of Purchase and Sale to help protect your clients from unforeseen insurance rates.

BCREA Strata insurance clause

Subject to: (A) the Buyer reviewing and approving the terms and rates of the strata corporation’s insurance, including the premium amounts, deductible amounts, and coverage limits thereunder and the date of expiration of such policy or policies; and (B) the Buyer confirming the Buyer’s ability to obtain personal strata owner insurance on terms satisfactory to the Buyer, including coverage for any owner’s portions of deductibles payable under the strata corporation’s insurance, in each case on or before ________________. These conditions are for the sole benefit of the Buyer.  

Immediately upon execution and delivery of this Contract of Purchase and Sale by all parties, the Seller or the Seller’s agent, will obtain copies of the strata corporation insurance policy or policies, or a summary of coverages, a cover note or a binder in respect of same, and will immediately, upon receipt, deliver such document(s) or cause such document(s) to be delivered to the Buyer or the Buyer’s agent. 
The clause and guidance became available on WEBForms® February 18.

Podcast: Changing Landscape of Insurance in BC

Then on Thursday, BCREA launched a podcast titled: The Changing Landscape of Strata Insurance in BC. featuring Shawn Fehr, Chair of the Board of the Insurance Brokers Association of BC. Fehr shares the reasons behind recent increases in strata insurance premiums and deductibles and offers tips for REALTORS® to help inform and protect their clients when dealing with transactions related to strata properties.