The province says it is making changes to regulations to address the rising cost of strata insurance in the province and to make the industry transparent.
Effective Nov. 1, insurers or insurance agents will be required to provide 30-day advanced notice directly to strata corporations of their intention to not renew an insurance policy or of any material changes to the policy.
BC says this will ensure strata corporations have advanced warning of cost increases and have time to seek other insurance options.
Insurance agents will also be required to disclose their commission amount, or a reasonable estimate, to strata corporations.
Insurers who fail to meet these disclosure requirements face penalties of up to $25,000 for an individual or $50,000 for a corporation.
Effective immediately, referral fees to strata property managers from strata insurance transactions are also prohibited.
“These changes will bring further transparency to the strata insurance market and help strata corporations maintain their financial sustainability by providing them the information they need to make informed decisions about their insurance needs,” the government said.
A report in June found that strata premiums have risen by approximately 40% throughout the province on a year-over-year basis, with deductibles experiencing up to triple-digit increases over the same period.