Condo and strata insurance in British Columbia
The strata corporation insures the building; everything inside your unit, and the deductible that can land on you, is yours to insure.
Nikki Tehara, a licensed BC insurance broker, arranges condo and strata unit owner insurance across all of British Columbia. Your strata corporation insures the building; you insure your unit, improvements, contents and personal liability, plus your exposure to strata deductibles. Quotes are handled by phone and email, wherever you live in the province.
What is condo insurance in BC?
It is the policy that picks up where the strata corporation policy stops. Every strata corporation in BC carries insurance on the buildings and common property. That policy does not cover your belongings, your upgrades, your personal liability, or the deductible the strata can charge back to you after a claim. A condo unit owner policy is built to cover exactly those things.
Whether you own an apartment style condo or a strata townhouse, the same split applies: the strata insures the structure, and you insure your side of the line. Getting the two policies to meet in the middle, with no gap between them, is most of the work.
What it typically covers
- Improvements and betterments. Upgrades to the unit beyond the original build, such as flooring, kitchens and bathrooms
- Contents. Furniture, clothing, electronics and the rest of what you own
- Personal liability. If someone is injured in your unit, or a loss that starts in your unit damages other property
- Additional living expenses. Somewhere to stay if an insured loss means you cannot live in the unit for a while
- Deductible and loss assessment coverage. Amounts the strata corporation charges back to owners after a claim on its policy
- Optional additions. Earthquake, sewer backup and overland water, where available for your building
What it commonly excludes
- The building itself and common property, which the strata corporation insures
- Wear and tear, gradual leaks and maintenance issues
- Overland flood and sewer backup, unless added as endorsements
- Earthquake, unless it is added
- Short term rental or business use that has not been disclosed to the insurer
- Units left vacant beyond the period stated in the policy
Condo insurance in British Columbia: what actually matters here
Two policies share the job in a BC strata. The strata corporation insures the buildings and common property, a requirement under BC strata legislation, and you insure your improvements, contents, liability and deductible exposure. The Government of BC publishes a plain language guide to strata housing and strata insurance that is worth a read if you want the full picture.
The part that catches owners out is the deductible. Strata deductibles in BC are often substantial, and the water damage deductible is commonly set separately and higher than the rest. Water damage is the dominant strata claim: burst pipes, failed hot water tanks, leaking appliances, overflow from the unit above. When the strata claims on its policy, the deductible can be charged back to owners, and in some situations to the single owner whose unit the loss started in. Loss assessment and deductible coverage on your own policy are what respond to that charge, and the limits only help if they are set with your actual strata deductibles in mind.
Earthquake is the other number worth looking at squarely. On strata policies the earthquake deductible is percentage based and applies to the insured value of the whole property, so the dollar figure can be very large. Earthquake coverage on your own policy is optional, and pricing it is the only way to make the decision an informed one rather than a default.
Before you quote, ask your strata manager or council for the current insurance summary. The deductibles listed there are what your own limits should be built around.
What Nikki needs to quote you
- The unit address, and the strata plan number if you know it
- Year built, building type and number of storeys
- The square footage of your unit
- The value of improvements and betterments, including any made by previous owners
- A rough value for your contents
- The strata deductibles for water, earthquake and general perils, if you have the insurance summary handy
- Whether you want loss assessment coverage and earthquake coverage priced
- Occupancy: owner occupied, rented to tenants, or sometimes vacant
- Your mortgage lender, if any
- Any claims in the last 10 years
- Your current insurer and renewal date
Common questions
Does the strata corporation insurance cover my unit?
It covers the building and common property, and usually the unit as originally built. It does not cover your contents, your upgrades, your personal liability, or the strata deductible if a claim is charged back to you. That gap is exactly what a condo unit owner policy is designed to fill.
What is loss assessment coverage?
When the strata corporation makes a claim on its own policy, it can charge the deductible back to owners. Loss assessment coverage responds to that charge, up to your policy limit. With strata deductibles in BC now often very large, this is the part of a condo policy most worth reviewing carefully.
Why do strata deductibles matter to me as an owner?
Strata deductibles in BC are often substantial, especially for water damage. If a claim starts in your unit, or the strata charges a deductible back to owners, you can be responsible for a significant amount. Your own policy can absorb that through deductible and loss assessment coverage, but only if the limits are set high enough.
Is water damage really the biggest risk in a condo?
Yes. Water damage is a major driver of strata claims, from burst pipes, failed hot water tanks, appliance leaks and overflow from neighbouring units. Many strata corporations now carry a separate, higher water damage deductible for exactly that reason, which makes your own water and loss assessment limits worth checking.
Do I need earthquake coverage on a condo in BC?
It is optional, and it is a personal decision. Keep in mind that earthquake deductibles on strata policies are percentage based, so the amount assessed back to owners after a major event could be very large. Your own policy can include earthquake on your contents, improvements and loss assessment exposure. Worth pricing before deciding.
What are improvements and betterments?
Anything that upgrades the unit beyond the original developer standard: new flooring, a renovated kitchen or bathroom, built in cabinetry. The strata policy generally covers the unit as originally built, so upgrades are yours to insure. If you bought a renovated unit, the previous owner upgrades count too, even though you did not do the work.
Do I need my own insurance if I rent out my condo?
Yes, but a different shape of it. A condo you rent to tenants is usually written as a rented condo or landlord policy, covering your improvements, any contents you leave, loss of rent and your liability, plus deductible and loss assessment exposure. Tell Nikki about the tenancy so the policy matches how the unit is used.
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