As if the cost of buying a home wasn't already expensive enough, you're going to have to shell out more cash because of rising insurance rates. B.C. condo insurance is skyrocketing anywhere from 50% up to 300%. This is definitely not something people want to happen.
In B.C., condo owners are now bracing for the increased cost that's going to come with surging insurance rates for their homes.
There are a few things that are to blame for these rising rates like super high value of B.C. properties, the earthquake risk profile for the province and even natural disasters that don't happen in B.C. like California wildfires or hurricanes in the Atlantic are having an impact on insurance.
"Rates are increasing for people in policies now anywhere from 50 to 300 percent, and deductibles are going from the conventional $10,000 or $25,000 to $100,000, $250,000 or $500,000,” said Tony Gioventu, executive director of the Condominium Home Owners Association, to Global News.
The number of insurers willing to take on policies for B.C. condos is decreasing because to insure even just one building could cost so much thanks to dollar values in the hundreds of millions.
It's already expensive enough to own or even rent in B.C., especially in Vancouver. In fact, most millennials won't even be able to afford a home in Vancouver until they're well into their 80s.
In a November 2019 ranking, North Vancouver and Vancouver were one of the top five Canadian cities with the highest rent for a one-bedroom according to Rentals.ca.
Buying is too expensive and renting is too and now with insurance rates going up, it's bounded to become even more expensive.
"The reinsurance rates that insurance companies purchase increase, and that has a trickle-down effect on the consumers," Paul Murcutt, of BFL Canada Insurance Services Inc., told Global News.
If you're a condo owner, you might want to look into your insurance and see what kind of increase will be coming your way.
For those looking to get into the real estate market, check out the building's insurance policy before you buy.
"Anyone now purchasing into a condo and into any strata corporation in B.C., one of the documents you want to request is a copy of the insurance policy," said Gioventu.
He suggests looking at the renewal date, what the values are, the deductibles and what the rate is. If it's coming up to the renewal date, you might want to hold off.