Condo Insurance in BC: Strata Deductibles and Your Own Policy

In a BC strata, two insurance policies protect your home: the strata corporation's and your own. The gap between them, especially the strata's deductibles, is where owners can get caught out. Here is how the pieces fit together, and what to check before you buy.

The short version

What the strata insures

Under the Strata Property Act, the strata corporation must insure the common property, common assets, the buildings shown on the strata plan and the fixtures the developer installed as part of the original construction. The coverage must be for full replacement value against major perils, including fire, lightning, smoke, windstorm, hail, explosion, water escape and vandalism. The strata must also carry at least $2 million in liability insurance.

Earthquake and overland flood coverage aren't mandatory, although the Province strongly advises stratas to carry earthquake coverage.

The strata must review its insurance every year, report on it at each annual general meeting, and tell owners and tenants as soon as feasible about any material change, including a higher deductible.

What your own policy should cover

• Your belongings. Furniture, clothing, electronics and other contents.
• Improvements. Upgrades made by you or previous owners, such as new flooring or cabinets, up to the limit in your policy.
• Additional living expenses. The extra cost of living elsewhere while your home is repaired after an insured loss.
• Personal liability. If you accidentally injure someone or damage someone else's property.
• Deductibles and loss assessments. Your share of a loss to common property above the strata's limits, and coverage for the strata's deductible if it is charged to you.

Ask about water and sewer backup coverage too, and tell your insurer if you rent out your home or leave it empty, since coverage can differ.

The deductible: who pays

The strata's deductible is a common expense, shared by all owners through strata fees. But if an owner is responsible for the loss or damage, the strata can sue that owner for the deductible. The Province notes that strata deductibles can range from $100,000 to $750,000 or higher.

Responsible doesn't have to mean at fault. BC courts have held that a strata doesn't have to prove negligence, and in a 2024 Civil Resolution Tribunal decision, an owner was held responsible for a $25,000 deductible for a loss caused by their tenant. Some stratas have bylaws that set out how deductibles are charged back, so read them, and make sure your own policy can cover the strata's deductibles.

If the strata needs to raise money to cover a deductible for repairs, it can do so through a special levy or the contingency reserve fund without an owners' vote.

Earthquake deductibles

Earthquake deductibles are usually a percentage of the building's full replacement value, not of the loss, and are often 10% to 20%. Each owner's share is usually based on unit entitlement. For example, if a building is insured for $40 million with a 10% earthquake deductible, the deductible is $4 million, and an owner whose unit entitlement is 1% of the total would owe $40,000.

Standard home policies exclude earthquake damage, so earthquake coverage is an optional add-on. Ask your broker whether your policy would cover your share of the strata's earthquake deductible.

What to check before you buy

• Form B. Since April 1, 2023, it has included a summary of the strata's insurance coverage. Ask for the insurance certificate too, which shows the deductible for each peril.
• Minutes. The annual general meeting minutes include the insurance report, and council minutes can show claims and rising deductibles.
• Bylaws. Look for bylaws about charging deductibles back to owners.
• Your broker. Share the strata's deductibles with your insurance broker before you remove subjects, so your own policy can be set up to match.

For the full package of documents, read the strata documents to read before buying.

Questions buyers often ask me

What does strata insurance cover in BC?

The buildings, common property, common assets and original fixtures, for full replacement value against major perils, plus at least $2 million in liability coverage. It doesn't cover your belongings or your personal liability.

Do I need my own insurance if I own a condo?

It is strongly recommended. Strata insurance doesn't cover your belongings, your upgrades or your personal liability, and the strata can recover its deductible from you if you are responsible for a loss.

Can my strata charge me the deductible?

Yes, if you are responsible for the loss or damage, even if you weren't at fault. Your own insurance can cover some or all of it.

How much is an earthquake deductible for a strata?

It is usually a percentage of the building's value, often 10% to 20%. Each owner's share is usually based on their unit entitlement.

Where can I see a strata's insurance before I buy?

Form B includes a summary of the strata's insurance, and you can ask for the insurance certificate, which shows the deductibles. The annual general meeting minutes also include an insurance report.

Planning your purchase? Start with a mortgage pre-approval and see From Offer to Keys for how the steps fit together.

This article is general information, not insurance or legal advice. Talk to a licensed insurance broker about your coverage. For the Province's guide, see insurance for strata owners and tenants.