If you live in a strata or condo in British Columbia, chances are you’ve heard the horror stories: sky-high insurance premiums, massive deductibles, and sudden special levies after a single water leak. It’s essentially part of BC condo folklore at this point. But behind those headlines, a more hopeful shift is happening.
Proactive risk management is becoming the new normal for strata corporations that want to protect their buildings and control insurance costs. It’s a movement championed by BFL CANADA and innovators like OctoAI, who are showing how prevention, technology, and communication can make a real financial difference for condo owners.
Why proactive risk management matters
As Paul Murcutt of BFL CANADA explained in a recent conversation with Thomas Beattie of OctoAI, insurance rates may have stabilized after several difficult years, but now is the time to act. “The next hard market will come,” Paul warned. “The buildings that prepare now will weather it best.”
Proactive risk management is about protecting property value, avoiding unnecessary disruption, and creating a stronger, more resilient community. In turn, saving money on insurance premiums.
Water damage alone accounts for 60–70% of all condo insurance claims in Canada. Add fires, mechanical failures, or extreme weather events, and costs can escalate quickly. In some cases, owners have even had to move out of their homes while major repairs were completed. A single claim can affect everyone in the building by increasing future premiums and deductibles.
The best approach to reducing claims is simple: take steps to prevent them.
From crisis mode to managed risk
For much of the past decade, stratas across the province have faced skyrocketing insurance rates. Severe weather, aging infrastructure, and repeated water damage claims have all contributed to rising premiums.
Now that rates have eased somewhat, industry experts agree — this is the time to get ahead. By putting programs in place today, councils can avoid panic decisions later. Insurance pricing is based not just on claims but also on confidence. Confidence that a community is organized, proactive, and serious about maintenance helps prevent premiums from spiking.
Buildings that demonstrate this through clear documentation and consistent upkeep are far more likely to earn favorable coverage terms and lower costs.
The foundations of an effective risk management plan
A strong risk management program isn’t complicated but does require consistency. Paul outlined key elements every strata council should implement:
1. Regular inspections and maintenance checklists
Create and follow inspection schedules for major systems like plumbing, roofing, electrical, and mechanical. Regular checks catch small issues before they become costly repairs.
2. Clear incident reporting systems
Make it easy for residents, contractors, and staff to report issues. The more people keeping an eye on things, the better. Quick reporting can turn what might have been a major claim into a minor repair.
3. Emergency and maintenance policies
Establish clear procedures for repairs, emergencies, and preventive actions. These policies keep everyone organized during a crisis and demonstrate responsibility to your insurer.
4. Updated depreciation reports
A well-prepared depreciation report isn’t just a regulatory requirement. This report shows underwriters that your building is managing long-term maintenance and funding it accordingly.
5. Owner engagement
Encourage owners to take part in initiatives. Committees for building inspections, fire safety, or water risk awareness help distribute responsibility and build a stronger sense of community.
Introducing BFL’s Flowguard program
One of the best examples of proactive risk management in action is Flowguard, a program developed by BFL CANADA to directly address one of the most common, and costly, sources of condo insurance claims: water damage.
Flowguard rewards buildings that take preventive action. When at least 75% of units are equipped with certified water detection and shutoff systems, those buildings can qualify for insurance discounts and deductible reductions.
The benefits of Flowguard include:
- Lower premiums: Eligible buildings can earn up to 10% off insurance rates, directly reflecting their lower risk profile.
- Reduced deductibles: Many participating buildings in Metro Vancouver have seen deductibles drop significantly, shortening the payback period for installing leak detection systems to as little as three years.
- Modern prevention: Flowguard-approved systems include water sensors, flow monitors, and automatic shutoff valves. These types of technologies can stop leaks before they become major events.
- Recognition by insurers: Communities that meet Flowguard standards are viewed as lower risk and often receive priority treatment during renewals.
Paul acknowledged that achieving 75% unit coverage requires commitment and coordination, but the results speak for themselves. Buildings that invest in prevention are protecting both their bottom line and their residents ’peace of mind.
Building a culture of prevention
Flowguard represents more than an insurance incentive. It’s part of a broader movement toward community-wide responsibility for risk management.
The idea is simple: preventing loss should be part of everyday operations, not something done after disaster strikes. By embedding maintenance schedules, inspection routines, and regular communication into a building’s culture, councils can show both insurers and owners that their community is proactive and well-managed.
This shift also pays off financially. Insurers increasingly differentiate between “good risk” and “high risk” buildings. Those with well-documented maintenance records, timely depreciation reports, and transparent communication often enjoy better coverage options and lower costs.
Seasonal and environmental risk management tip
Seasonal changes are often when small oversights turn into big problems. A few simple steps can make a major difference:
- Water prevention: Check drainage, gutters, and sumps regularly, especially in fall and spring. Use leak sensors in high-risk areas such as mechanical rooms and laundry facilities.
- Fire safety: Test fire equipment and update evacuation plans, especially for buildings in wildfire-prone areas.
- Winter readiness: Ensure heating systems are maintained, de-icing materials are stocked, and snow removal contracts are current.
- Extreme weather preparation: Secure outdoor furniture, check roof seals, and have an earthquake or windstorm plan in place if applicable.
Consistent maintenance and clear communication help buildings stay one step ahead of seasonal challenges.
Technology and transparency go hand in hand
Modern risk management increasingly relies on smart technology and data-driven insights. That’s where OctoAI comes in, providing tools that help councils and property managers analyze building data and identify early warning signs.
Together, technology and good communication create transparency. Something both insurers and owners value. A well-documented, digitally managed building not only prevents problems but also tells a compelling story to insurers, owners, and prospective buyers about accountability and care.
It’s not just about cost
Convincing a busy council or skeptical ownership group to invest in sensors, maintenance, or risk reviews can take effort. But the benefits go far beyond premium savings.
When claims are reduced, buildings experience fewer disruptions, shorter repair timelines, and less financial strain on owners. In other words, proactive risk management creates resilient communities.
Every preventive step adds up to peace of mind for owners who simply want their homes to be safe and well-run.
The future of strata insurance in BC
Programs like BFL’s Flowguard and tools from OctoAI are redefining how strata communities manage risk in British Columbia. The focus is shifting from reactive to proactive.
Insurance savings are only part of the reward. The real win is confidence. Knowing your community is organized, well-maintained, and resilient in the face of change.
For homeowners and council members alike, that’s the kind of peace of mind that’s worth investing in.