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By Kamloops-South Thompson MLA Todd Stone

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SOUND OFF: British Columbians hit hard with skyrocketing strata insurance costs need the government to take action

Mar 5, 2020 | 5:17 PM

IN RECENT MONTHS, a growing number of British Columbians have been hit hard with massive spikes in strata insurance premiums, deductibles and fees.

With more than 30,000 strata corporations in B.C., this issue is impacting people all across the province. Insurance premiums are increasing by as much as 400 per cent, and deductibles have increased thirty-fold in some cases. Thousands of British Columbians are truly at risk of losing their homes or being unable to sell or purchase strata units.

In our community of Kamloops, one strata corporation informed me that their premium has skyrocketed by 335 per cent. Their deductible for water damage has gone from $5,000 to $250,000 — a staggering increase of more than 4,900 per cent.

This means that folks living in this strata unit will be faced with a $3,400 increase to their maintenance fees over the next three years. This is an unaffordable expense for most British Columbians, but it will be particularly difficult for those on fixed incomes.

The NDP has had months to consult with stakeholders to try to identify solutions, yet they have taken absolutely no action to date. People who live in strata units — again, all over this province — are in crisis mode.

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And there’s a reason for the NDP’s inaction that’s of serious concern; the NDP government is actually profiting from this strata insurance crisis. Currently, there is a 4.4 per cent provincial tax applied to every strata insurance premium, so when premiums skyrocket, the NDP reaps a windfall. This year alone the NDP is collecting an extra $15 million in insurance premiums tax. Over the next three years, this tax will bring in an extra $75 million. With tax revenue like this, there’s little incentive to alleviate the financial burden that people are currently facing.

As Opposition Critic for Municipal Affairs and Housing, I put forward a private member’s bill in the Legislature last week that would amend the Strata Property Act. The bill provides numerous actions the government can implement right now to address the severity of this crisis and give people the relief they desperately need.

This bill proposes measures to ensure greater clarity in the claims process and a requirement for strata corporations to be provided insurance renewal terms at least 30 days in advance — along with a few other requirements around providing proof of insurance and acquiring liability insurance.

Additionally, I’ve called on the government to create a strata water damage prevention program to help homeowners and strata corporations invest in preventative maintenance via necessary upgrades such as automatic water shut-off valves, steel braided hoses and low flow toilets.

With these recommendations — which have been supported by several industry stakeholders such as the Condominium Home Owners Association of B.C. — our bill offers achievable legislative changes that can curb this crisis and proactively prevent further escalation.

I have urged the NDP to consider this bill and take action today. British Columbians are done waiting for the NDP to “monitor” and “discuss” the situation — the time for consulting and talking is over. With hundreds of thousands of British Columbians living in strata properties across the province, we need action now.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or the Jim Pattison Broadcast Group.