The short answer
A renewal can look flat and still cost owners more: a higher appraisal lifts the premium and every percentage-based deductible, and one deductible edging up from $25,000 to $50,000 changes who pays after a leak. This tool lines up last year and this year, shows the change on every line, splits the premium into more value insured versus a higher price per $1,000, and turns it into your monthly share.
Where to find each number
| Number | Where to look | Line name on the summary |
|---|---|---|
| Annual premium | Not on the summary of coverages. Look on the insurance invoice, the broker’s renewal letter or the strata’s budget. | “Total premium”, “Insurance” in the budget |
| Insured building value | Page 1, first row of the PROPERTY box | “All Property…”, “Total insured value” |
| Earthquake deductible | Page 1, PROPERTY box, deductible column | “Earthquake Annual Aggregate” |
| All risks, water, sewer, flood deductibles | Page 1, PROPERTY box, deductible column | “All Risks”, “Water Damage”, “Sewer Backup”, “Flood” |
| Liability, D&O, crime limits | Page 2 | “Commercial General Liability”, “Condominium D&O”, “Employee Dishonesty” |
| Additional living expenses | Page 1, under Property Extensions | “Additional Living Expenses – Annual Aggregate” |
The right-hand column is this year’s. The left is last year’s, from last year’s summary. The Insurance Line Decoder explains each line.
If this happens, then that
| If… | …then |
|---|---|
| The insured value goes up | The premium rises with it, and so does every percentage-based deductible (such as earthquake), even if the percentage is unchanged. |
| The rate per $1,000 goes up | You are paying more per dollar of cover. Ask the broker what drove it: claims history, market, location or building age. |
| A deductible goes up | The premium may be lower, but the strata (and so owners) carries more of every claim. Check the Who Pays the Deductible? tool. |
| A limit goes down | There is less protection for the same or higher price. Ask why, and whether it can be bought back. |
| A line disappears | The cover may have been dropped. Compare the two summaries line by line, not only the total. |
Questions to ask the broker at every renewal
- When was the last appraisal, and does the insured value match it?
- What changed in the premium: the value insured, or the rate? Why?
- Did any deductible or limit change? Can any be bought back, and for how much?
- Is the earthquake percentage applied to the buildings damaged or to everything? Is a buy-down available?
- Are all insurers and layers rated and licensed in Canada?
- Were there other quotes or options, and why was this one chosen?
- What should owners know about their own policies, such as loss assessment and deductible cover?
Councils can use a CPA’s independent look at how insurance and other costs show up in the budget and financial statements. See the firm’s strata financial review service.
Where this comes from
Links open other websites.
- Province of BC: Insurance for strata corporations
- Strata Property Act (BC Laws) – Part 9, Insurance
More free tools for strata owners and councils
Want advice for your own situation?
This free tool is a courtesy of HJ Wu & Company Inc. (CPA), a Vancouver CPA firm offering accounting, tax, financial reporting and review assurance. Feedback on the calculators is welcome.