We often write about the challenges of rezonings, fees, taxes and building approval processes adding to the costs of housing.
However, we spoke with insurance industry experts, and they say another rising issue is the cost of insurance when people are faced with a fire, flood or other catastrophe.
In these cases, homeowners must seek alternate accommodation during the renovation or rebuild.
In the past a residential rebuild was completed within 12 to 14 months. Today this has increased to two years or more. Businesses trying to rebuild face similar circumstances.
A large part of the reason for lengthy delays is the municipal approval process for building permits, often taking over a year just to get construction started.
With a total loss, additional living expenses may be exhausted under homeowners’ insurance policies, which cover out of pocket expenses such as rental accommodation while the home is being rebuilt.
Insurance industry experts say past monthly rental costs for an average residential home in Victoria were $3,000 to $4,000. Now the costs are $7,000 or more in Victoria and much higher in the peninsula.
This is due to a lack of inventory and rising housing costs, including construction, fees and taxes.
On the commercial side, a lengthy closure for business owners increases the risk of losing clients permanently, in addition to marketing costs to restore the business.
Insurance experts say many commercial landlords have 12 months indemnity for rental income loss, when permit delays may require 24 months or longer.
There are reasonable solutions, such as municipalities prioritizing the building permits of people experiencing catastrophic events. Fast-tracking their permit applications would provide both personal and financial relief in a time of crisis.
Most elected officials agree housing affordability is a priority, especially in our region with some of the highest costs in Canada.
Prioritizing the building permits of homeowners and renters in crisis would offer both more affordability and compassion.
This column appears Wednesdays in the Times Colonist.
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