As many condo dwellers of notice strata insurance fees have been on the rise. Some have not even been able to afford to get insurance in 2020. Government has been asked what they can do to release this problem. The answers concerning because strata insurance is a private industry With a few government regulations. Without the insurance residents of these condos could have their homes in jeopardy.
Speaking Tuesday, Finance Minister Carole James and Housing Minister Selina Robinson repeatedly said the situation of rising insurance costs is a complex one and that Tuesday’s legislation was focused on transparency.
“The current situation is unacceptable and there is no quick fix to this problem,” James said.
In a statement, the government said it would amend the Strata Property and Financial Institutions acts and make regulatory changes to:
- Stop referral fees between insurers or insurance brokers and property managers or “other third parties.”
- Set out “clear guidelines” for what stratas need to insure.
- Require strata corporations to inform owners about their insurance coverage, any policy changes — including increasing deductibles — and allow the strata to dip into its contingency fund to pay for “unexpected” premium increases.
- Protect unit owners within the strata from “large” lawsuits from the strata “if the owner was legally responsible for a loss or damage, but through no fault of their own.”
Other problems that could be forcing insurance premiums up our increase property values and newer condos being built at higher cost and value. Are the measures put forth so far enough to protect homeowners who desperately need the insurance?