Property insurance costs varied widely for the first part of 2021. Insurance rates for condo owners continued to rise with costs for single family homes falling.
Year-over-year, home insurance rates for houses were down 12% in BC. There is worry though that the rising costs of material like lumber, the increased demand for renovations as well as more frequent environmental catastrophes could drive rates higher.
On the condo side owners still face rising rates. This is mainly due to aging infrastructure, increasing deductibles and a lack of competition in the marketplace. In BC condo insurance rates increased by roughly 27% during the first quarter of the year.
The B.C. government announced a number of regulatory changes last year aimed at bringing more competition to the strata market but things are slow to change and could take another year to see some impact.
Rates for houses have dropped and claims have dropped as many people began to work from home during covid. Losses normally happen when people aren’t home and so this has been greatly reduced. Claims have reduced and profitability has increased which means we should hopefully see more competition in the market.
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