Advertisement

Condo insurance crisis leads to online petition by New Westminster, B.C., woman

Click to play video: 'Condo owner launches petition demanding gov’t action over rising strata insurance'
Condo owner launches petition demanding gov’t action over rising strata insurance
WATCH: A B.C. condo owner is taking matters into her own hands in the insurance crisis that has some strata owners facing massive premium increases and others unable to get insurance at all – Feb 21, 2020

Asifa Lalji has worked hard to stay in her New Westminster, B.C., home.

When she was diagnosed with facioscapulohumeral muscular dystrophy, she invested thousands of dollars to make the strata unit more accessible. Now, she worries an increase in her building’s insurance premiums might force her to move.

“You’re paying for insurance as long as you don’t use it,” said Lalji. “Once you actually need to use it, then they don’t want to insure you anymore.”

The premium for Anchor Pointe on Quayside Drive climbed 300 per cent from $69,000 to $259,000 upon renewal this year. The reason the strata council has given — there were fewer insurance providers willing to provide the coverage. The companies that would, meanwhile, have dramatically increased the cost.

Story continues below advertisement

“We got word three days before the insurance expires that the rate was going to go up,” said Stephen Holmes, the strata council treasurer.

Click to play video: 'Some stratas having trouble getting property insurance'
Some stratas having trouble getting property insurance

Strata council president Bruce Campbell said there are many residents in the strata who are just scraping by financially. The increase in monthly fees might mean cutting back on food budgets or being forced to move elsewhere, he added.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

“It’s absolutely gut-wrenching, because you’re trying to handle a situation where people are in a panic mode,” said Campbell.

Lalji has launched an online petition seeking government intervention. She said the explanations given by the insurance companies don’t add up.

Story continues below advertisement

“They’ll say B.C. is a high earthquake zone,” Lalji explained. “Well, B.C. has always been a high earthquake zone … that never had an impact before. Why now?”

Click to play video: 'Changes proposed to limit surging strata insurance costs'
Changes proposed to limit surging strata insurance costs

Pressure has been mounting on the provincial government to act. While full building recovery insurance is mandated under the B.C. Strata Property Act, there is no mechanism in place to ensure private insurers will offer the coverage at an affordable cost.

Premier John Horgan said while this issue has only come up in recent months, Finance Minister Carole James has set up a caucus committee to look into the issue.

“We’re going to be speaking to the Insurance Bureau of Canada to get their rationale for these unusually large spikes in costs, and we’re going to do what we can to manage those down,” he said.

Story continues below advertisement

Andrew Wilkinson, leader of the BC Liberal Party, was quick to highlight the NDP government’s slow response.

“We raised this with the NDP finance minister last week and she blew it off,” said Wilkinson. “Condo owners need to know that government is on their side.”

There are more than 30,000 strata buildings in British Columbia. Lalji hopes her petition will pick up in momentum and send a message to all stakeholders that the current response and explanations aren’t enough.

“I just spent a substantial amount of money making my unit accessible,” she said. “It’s the first time I’m actually worried about where I’m going to live.”

Click to play video: 'More sky-high insurance strata increases'
More sky-high insurance strata increases

Sponsored content

AdChoices