STRATA UNIT
BY: GORD THOMPSON COMMERCIAL INSURANCE BROKER WAYPOINT INSURANCE
Are You The Owner Of A Strata Unit?
What You Need To Know
Are you the owner of a strata unit? Do you sit on a strata council? If so, you will know that there are many decisions a strata council is faced with, and the insurance is often viewed as nothing more than a budgetary expense. This year you can take charge of your insurance by following three main steps:
1. CREATE AN INSURANCE FILE A history of your insurance will be beneficial to future strata council members and will empower you to work with your insurance broker to secure the best insurance terms. When seeking quotations from a new broker, your insurance file will help you negotiate the best rates possible, especially if you have a history of proactive improvements to the site and low losses. Here are just some of the documents your insurance file should contain:
• Contact Information. For emergency claims, brokers, insurers, accountants, and preferred contractors or restorations firms you can call in an emergency.
• Claims History. An updated claims log detailing the amount of each claim, date of loss, cause, and the actions you took to prevent a re-occurrence
• Underwriting Information. A one- or two-page summary detailing your building constructions and services. This should be revised as updates are completed.
• Signed Applications. When you apply for insurance coverage, the insurer is agreeing to terms based on the application you provide. A record of current and past applications will be helpful for future councils and will assist you should an insurance dispute occur.
• Past Policies. Don’ t throw out these old policy documents! Insurance changes over time, premiums increase, deductibles vary, and wordings are revised. Your past policies will help you understand the evolution of the insurance marketplace and can provide insight for future negotiations.
2. CHOOSE THE RIGHT DEDUCTIBLES As building values increase, so do the insurance premiums. Increasing your deductibles can provide you with immediate premium savings but make sure you understand how this will impact you in the event of a claim. If the strata does not have enough funds to cover a high deductible, an assessment may need to be levied against individual unit owners. This may not be a problem as many condominium insurance policies contain additional coverage for deductible assessments; however, it is something that should be planned for— and discussed with all strata owners— before any major changes are made.
3. GET AN APPRAISAL A replacement cost appraisal prepared by a professional firm will give you confidence that your insurance limits will cover your building should it need to be replaced if disaster occurs. Don’ t overpay for insurance by accepting inflationary building increases. Know your limits and use your appraisal to negotiate favourable rates. Insurers love replacement cost appraisals! Many appraisal firms offer two free annual updates, so the investment in an appraisal is really a three-year value.
In addition to the steps above, find a broker who you trust. Insurance is a partnership and you need to rely on your broker at the point-of-sale as well as in an emergencyclaim situation. Ask about the claims process and understand what services you will receive before a claim occurs. +
Gord Thompson is a commercial insurance broker based out of Waypoint Insurance’ s Courtenay office. Assisting clients all over British Columbia, Gord is detail oriented, knowledgeable, and creative when it comes to securing the best coverage for his clients. To contact Gord or any one of our Waypoint professionals, call 310-8442 or visit us online at waypointinsurance. ca.
8 | SPRING 2017