Kevin Froese said insurance costs have skyrocketed at his condo building in Langley’s Willoughby neighbourhood, even though it is only three years old and has never had a claim. (Dan Ferguson/Langley Advance Times)

Kevin Froese said insurance costs have skyrocketed at his condo building in Langley’s Willoughby neighbourhood, even though it is only three years old and has never had a claim. (Dan Ferguson/Langley Advance Times)

VIDEO: Insurance shock for Langley condo owners

New building with no claims sees costs triple

It’s a three-year-old condo that hasn’t had any insurance claims filed since it opened.

Smoking is not allowed, propane tanks are banned and no B and B rentals are permitted.

And despite that, insurance costs have skyrocketed at the Willoughby condo complex where Kevin Froese and Jacklyn Loewy live.

“If someone said my insurance would have gone up 300 per cent, I would have laughed at them, and yet, we’re the worst-case scenario,” Froese told the Langley Advance Times.

In December, residents of the 181-unit strata, one of several in the Yorkson Creek Complex in Langley near 208th Street and 80th Avenue, learned their insurance deductible would climb from $5,000 to $250,000 for water damage and sewer backup losses.

At the same time, they were told the strata’s insurance premium was going to rise from $97,000 to $371,000.

“We found out the day the policy renewed,” Loewy recalled.

“We were left scrambling.”

Froese and Loewy, and their fellow condo owners, had to find another insurer that would cover the difference in the deductible.

They did, but it will mean extra expense,including a $400 special assessment, plus another $135 to $140 a month in higher strata fees, Froese said.

Because they budget for unexpected costs, Froese and Loewy said they will get by, but they are concerned that some of their neighbours, who are retired people on fixed incomes, may not be able to afford the hikes.

And they are worried about what will happen if, as seems likely, there is another jump in insurance costs down the road.

“We’ve been told it could go up again. If it goes up again next year, who knows? ” Froese said.

While they have yet to get a clear explanation for their sudden hike, they know many insurance companies are getting out of the condo market, and those remaining are out to reduce their exposure to risk by raising premiums and hiking deductibles.

Froese predicted their condo won’t be the last to get hit.

“It has huge, far-reaching implications,” Froese commented.

“It’s going to be ugly.”

On Tuesday, residents of an even bigger condo project in Abbotsford revealed their insurance costs have also soared.

At Abbotsford’s tallest building, the brand-new 26-storey Mahogany Tower, the insurer has just raised premiums by 780 per cent.

Mike Pauls, the president of the building’s strata council, said the strata was shocked when they saw their insurer, BFL, had raised their rates from $66,000 to $588,000.

Pauls said covering the hike will require a one-time levy of $3,000 per unit, as well as doubling the monthly strata free to $600.

READ MORE: Insurance skyrockets 780% for Abbotsford condo owners

Rob de Pruis, director of consumer and industry relations for the Insurance Bureau of Canada, said assessments for insurance are based on individual buildings, and increases are determined from the potential for floods or earthquakes, but other factors, like vacancy rates, could also come into play.

De Pruis also noted that Canada’s insurance industry is facing financial challenges from increasingly frequent and severe disaster claims. He said insurers used to pay $500 million annually for climate-related claims, but the payouts have doubled in the past few years.

A spokesperson for the B.C. Ministry of Municipal Affairs and Housing said insurance costs for stratas are increasing across country and the province is working with the private industry to make ensure affordable coverage is available in the face of the climate challenge.

READ ALSO: ‘British Columbians are paying too much’: Eby directs ICBC to delay rate application

– with files from Black Press Media



dan.ferguson@langleyadvancetimes.com

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Theatrix Youtheatre Society will be running their first program in the Langley-Aldergrove area this spring. (Special to The Star)
Young Aldergrove actors wanted for local theatre production

Kids age six to 11 can create a play from scratch through Theatrix Youtheatre Society in April

More childcare spaces are opening in Langley. (Black Press Media files)
Langley gets 144 new daycare spaces

Government funding is expanding childcare

Tako van Popta, MP for Langley-Aldergrove. (Tako van Popta/Special to the Langley Advance Times)
Langley MP Tako van Popta to hold virtual town hall to discuss firearm legislation

A lot of my constituents have serious concerns about how Bill C-21 will affect them, van Popta says

The Langley School District has issued COVID-19 notifications at three schools. (Langley Schools)
Six Langley schools on COVID exposure list, three added Wednesday

Parents are asked to continue to send their kids to school

A HUB Cycling award will go to local winner Geraldine Jordan of Langley, with her youngest daughter Casandra Jordan. (Elisabeth Jordan/Special to the Langley Advance Times)
HUB Cycling award winner Geraldine Jordan of Langley, with her youngest daughter Casandra Jordan. (Elisabeth Jordan/Special to the Langley Advance Times)
Langley cyclist wins award for local advocacy

HUB has honoured Langley’s Geraldine Jordan

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the B.C. legislature press theatre to give a daily update on the COVID-19 pandemic, April 6, 2020. (B.C. government)
B.C. nears 300,000 COVID-19 vaccinations, essential workers next

564 new cases, four deaths, no new outbreaks Thursday

This Dec. 2, 2020 photo provided by Johnson & Johnson shows vials of its Janssen subsidiary’s COVID-19 vaccine in the United States. THE CANADIAN PRESS/AP-Johnson & Johnson via AP
Canada approves Johnson & Johnson’s 1-shot COVID-19 vaccine

It is the 4th vaccine approved in Canada and the 1st that requires just a single dose

Walter Gretzky father of hockey hall-of-famer Wayne Gretzky waves to fans as the Buffalo Sabres play against the Toronto Maple Leafs during third period NHL hockey action in Toronto on Tuesday, Jan. 17, 2017. THE CANADIAN PRESS/Nathan Denette
Walter Gretzky, father of the Great One, dies at 82

Canada’s hockey dad had battled Parkinson’s disease and other health issues

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Municipal Affairs Minister Josie Osborne speaks in the B.C. legislature, March 4, 2021. (Hansard TV)
B.C. Liberals, NDP sing in harmony on local election reforms

Bill regulates paid canvassers, allows people in condo buildings

(National Emergency Management Agency)
No tsunami risk to B.C. from powerful New Zealand earthquake: officials

An 8.1 magnitude earthquake shook the north of New Zealand Thursday morning

(AP Photo/Richard Vogel, File)
Pandemic stress, isolation key factors as to why Canadians turned to cannabis, alcohol

Study found that isolation played key role in Canadians’ substance use

Burnaby Mounties responded to 56 complaints and issued 10 tickets to people flouting COVID-19 restrictions in February. (Patrick Davies/100 Mile Free Press)
COVID denier fined $2,300 for hosting gathering in her home: Burnaby RCMP

The woman told Mounties she does not believe the pandemic is real

Most Read