Many strata corporations have seen their deductibles, particularly for damage caused by water ingress, rise significantly. An owner who isn't adequately insured against this risk could face a crippling liability.
1. Ensure that the property has the right insurance! Especially in stratified duplexes (RU6 properties in Kelowna), these property owners each have TWO policies of insurance; one policy that is held by the "THE OWNERS STRATA PLAN ___" (which is usually adjusted if prepaid annually on the statement of adjustments) and a second strata home owners policy.
2. Strata deductibles need to be considered! Ensure that you instruct your buyer clients to take their strata insurance policy (usually included with the Form B package) to the agency that is doing their strata owner's policy, importantly these policies need to match up as strata policy deductibles are quite large.
3. Get insurance in place for the right date! Remember that the statement of risk passing in the CPS means that the Buyer is responsible for the property as at 12:01am on the COMPLETION DATE (not the possession date). Buyers need insurance in place before this time.
4. Sellers, don't be fast to cancel your insurance! Most deals close when you would expect, but a small proportion don't, Sellers are well advised to keep their insurance in place on their former property until the purchase price is in hand (don't cancel it in advance).
I have capacity for great clients!
Our firm move is complete and we are here to assist clients buying commercial, industrial and residential real estate all across British Columbia. If we can help with your deal, give me a call at 250-980-3360 (ext.367) or email (peter@mmslawfirm.ca).
Peter Borszcz
Lawyer*
Montgomery Miles & Stone Law Firm
Please update your address books:
Address: #510-1708 Dolphin Ave. (Landmark 2), Kelowna BC, V1Y 9S4.
Email: peter@mmslawfirm.ca
Phone: 250-980-3360 (ext. 367)
Fax: 250.868.9011
