In this episode Paul Murcutt, Senior Vice President of BFL Canada gives an overview of the strata insurance market and what stratas can do to minimize the impact of claims.
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Over 1.5 million people live in strata housing in the Province of British Columbia.
Let's face it, you'd rather watch reruns of the nightly news than read the Strata Property Act (And we can't blame you) Still, most people are at a loss when it comes to understanding such an important framework for how many of us live our lives in proximity with one another.
🎙 Stratagize with Brent Anderson & James Milne features conversations with industry leaders and experts who share their knowledge to demystify an industry that impacts the lives of more than 1 out of 3 British Columbians.
Whether you are a council member, owner, investor, or renter, if you're looking for content that will bring value to your strata and help you get to the next level… THIS is it!
Listen to our latest episode, subscribe and rate us on iTunes. 👊
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🚨 STRATA TIP:
Ensure that you have homeowners insurance and that it is updated regularly, at least annually.
MAIN TAKEAWAYS:
🛠 Insurance broker is essentially a professional shopper who goes to the insurance company to seek terms.
🛠 Insurance companies make money two ways...Underwriting profit & Investment income. When one or both of those streams of revenue are down we see insurance companies change their position.
🛠 Replacement value has direct impact on insurance premiums. If replacement value increases 10% then insurance premiums also have to increase 10%
🛠 Replace rubber water supply lines with steel braided hoses
QUOTES:
💬 “Strata corporations have to purchase insurance based on full replacement value. As costs of goods and labour go up, insurance premiums need to reflect those increases.”
💬 “50% of homeowners do not have insurance”
MYTH VS FACT 🦄
"Do insurance brokers pay referral fees to strata management companies?"
(MYTH) For BFL this has always been a myth. Legislation was put in place last year to prevent this situation from happening.
“Brokers provide insurance”
(Myth) Insurance brokers are professional shoppers that go to market and shop for best rates from insurance companies then provide the best pricing available.
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