Monday, March 2, 2020

Vancouver Condo owners cry as insurance skyrockets

Stratas in B.C. are receiving huge increases for insurance. Renewals have increased from 50% to 300% and deductibles have increased from $25k to as high as $250k. Condo owners facing huge increases in strata fees are demanding government 'do' something.
Increases are passed onto owners, with renters also getting dinged. Fees largely depend on how well a board maps out future maintenance costs.
A number of reasons are given for the increase in insurance. A key one is that the number of claims has increased. The jump in claims comes from aging, poorly maintained buildings from the 1970s and 1980s, along with an increase in the number of stratas with the condo boom. Strata owners are notorious for 'cheaping out' when it comes to building maintenance. They turn down major upgrades or any attempt to boost a building’s contingency fund. Despite being warned to take depreciation reports seriously, and after a 12 year bull run on prices, some citizens believe they require government assistance.

The median Greater Vancouver condo is priced at about $764 per square foot, down 8.3%. In the City of Vancouver, the median condo was selling for around $1,044 per square foot, down 6.3%.