Why should strata insurance be purchased?
Strata property act of BC requires property and liability strata insurance for all strata corporations.
My strata’s insurance policy is being handled by whom?
Usually, the property manager of a strata will handle the stratum’s insurance and communicate with an insurance agency directly. A strata corporation may have additional designated representatives, though. You can ask your strata council or property management for more information.
Strata insurance covers what?
It is generally understood that strata insurance is used to cover communal properties, as well as limited communal properties (the building). Strata liability insurance must provide protection against fire, lightning, smoke, windstorm, hail, explosion, water escape, riots or civil commotion, impacts by aircraft and vehicles, vandalism, and malicious acts that are deemed to be a peril of a property and must cover full replacement value. The amount of liability insurance must be at least $2 million per strata development.
It is possible for stratas to have more comprehensive insurance coverage than is required by law. Insurance policies outline the details of coverage.
The purpose of strata unit insurance is to protect your unit from loss
Unit owners and their renters frequently purchase their own insurance for each of their individual units because strata insurance only covers common property. These insurance plans could provide coverage for personal belongings, increased living costs or lost rental revenue, betterments and additions to the unit, loss assessments, and personal liability insurance. To establish their coverage requirements, clients might consult an insurance representative.
The insurer sets the price for strata insurance
The insurance providers (insurers) who cover the strata property determine the cost of strata insurance. The BC Financial Services Authority oversees insurance firms in BC.
There is a difference between an insurance agency and an insurance company
Brokers and insurance agencies serve as middlemen between clients and insurance solutions and products by offering them advice and access to these products. The ones who provide certain insurance products and underwrite the risk are insurance companies (insurers).
In this case, an insurance agency would assist the client with determining their coverage needs and buying a policy provided by the insurance company.
Agents and agencies provide insurance services. What do they do?
In order to identify the right insurance options and products for your clients’ needs, insurance agents work with them. Additionally, they can offer suggestions on how to reduce risks so that stratas can get the greatest premiums on offer.
Agents are obligated to ensure that clients are promptly informed if their insurance cannot be renewed under the same terms and circumstances.
The Insurance Council’s Code of Conduct, which mandates that insurance agents behave in good faith, with integrity, and in the best interests of their clients, is an obligation that they must uphold.
How does the Insurance Council contribute to the industry?
As the regulatory body for BC insurance agencies, agents, salespeople, and adjusters, the Insurance Council of BC licenses and regulates them.
The Insurance Commission does not regulate insurance companies (insurers), property management companies, restoration contractors, or strata councils.
Our options are as follows:
- When it is discovered that an insurance agent, an adjuster, a salesperson, an agency, or a corporation has violated the Financial Institutions Act or Council rules or regulations, it is necessary to look into those individuals and to take appropriate disciplinary action.
Among the things we cannot do are:
- Rates and pricing of insurance policies are set or controlled
- Providing interpretations of policy
- Resolve disputes between claimants
- Refund disputes should be resolved through mediation or arbitration.
What is the process of getting a copy of the insurance policy for my strata?
To better understand the coverage provided by your strata company or to learn who the insurer is, it can be useful to acquire a copy or summary of the insurance policy. It is customary to include insurance policy statements with AGM packages, so check there or get in touch with your property manager.