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