Strata Insurance in BC: What Every Strata Owner Needs to Know
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Protecting your shared property and your home with the right strata insurance coverage.
Over 1.5 million British Columbians live in strata properties — from duplexes and townhouses to high-rise condominiums and bare land developments. Strata living can offer convenience and shared amenities, but it also comes with unique responsibilities, especially when it comes to strata insurance.
Living in a Strata Property: More Than “Carefree Living”
We work with individual owners to ensure their shared property and personal assets are fully protected. Whether you live in a small duplex strata or a multi-unit complex, understanding your insurance obligations is key to protecting your investment.
Key Takeaways
- Strata corporations must insure common property to full replacement value under BC’s Strata Property Act.
- Owners still need individual unit (condo) insurance for personal belongings, upgrades, and liability.
- High deductibles on strata building policies mean deductible assessment coverage is essential.
- Insurance needs vary depending on the strata’s size, type, and governance.
- Working with a knowledgeable broker helps prevent coverage gaps and avoid costly surprises.
How Strata Insurance Works in BC
Strata ownership is a form of shared ownership governed by BC’s Strata Property Act. When you purchase a strata property, you own your unit and a proportionate share of the common property — which could include everything from the roof and hallways to elevators, landscaping, parking, and amenities.
This means insurance is divided into two main areas:
- Strata Corporation Insurance – Covers the building(s), common property, and common assets.
- Individual Unit Owner Insurance – Covers personal contents, unit upgrades, liability, and deductible assessments.
What the Strata Corporation Covers
By law, strata corporations must insure the common property to full replacement cost, except in specific, limited circumstances. This typically includes:
- The buildings and structures shown on the strata plan
- Common property like lobbies, elevators, parking areas, fitness rooms, and hallways
- Original fixtures in units (as defined in the bylaws)
- Common assets such as furniture and maintenance equipment
- Commercial General Liability (CGL) to protect against third-party property damage or injury claims
The strata corporation’s insurance is a common expense, paid for through strata fees and approved annually at the AGM. Strata councils must review the adequacy of their insurance yearly — ideally based on an updated insurance appraisal to reflect current construction costs.
What Your Personal Condo Policy Covers
Many strata owners mistakenly believe they don’t need their own insurance because the strata corporation covers the building. However, the building policy does not cover:
- Your personal belongings (furniture, clothing, electronics, etc.)
- Renovations or upgrades to your unit
- Your personal liability if you cause damage to another unit or the common property
- Costs you may owe if you’re responsible for part of the building policy’s deductible
Your condo (unit) policy can also provide coverage for:
- Additional living expenses if you can’t stay in your unit after a covered loss
- Loss assessment coverage for your share of a claim on common property
- Contingency coverage if the building’s insurance is insufficient
Small Stratas, Big Responsibilities
Even in a two-unit (duplex) or three-unit strata, the corporation must insure the common property. While smaller stratas may have more flexibility in governance, they are not exempt from insurance obligations under the Strata Property Act.
Bare land stratas — which may look like regular single-family homes — often share streets, utilities, or other facilities. The strata’s policy covers those common elements, while each homeowner insures their own dwelling.
Why Deductible Coverage Matters
Deductibles on strata building policies can be very high — in some cases $25,000 to $100,000 or more. If a loss originates in your unit, the strata corporation may require you to pay the deductible, even if you weren’t negligent. Without proper deductible assessment coverage in your unit policy, this cost could come out of your pocket.
Common Additional Coverages
Depending on location and risk factors, a strata corporation (or individual owners) may also consider:
- Earthquake coverage – Recommended in southwestern BC, often with high deductibles
- Overland flood coverage – For water entering from outside due to heavy rain, snowmelt, or rising water
- Sewer backup coverage – For damage caused by water or sewage backup into the building
Best Practices for Strata Councils
- Keep insurance appraisals up to date (every three years, reviewed annually)
- Communicate changes in building policy coverage or deductibles to owners promptly
- Maintain a proactive maintenance plan to reduce claims and control premiums
- Consider bylaws to make certain coverages, like earthquake insurance, mandatory
Best Practices for Strata Owners
- Get a copy of your building’s insurance declaration and review it with your broker
- Maintain an up-to-date inventory of your personal belongings and upgrades
- Ensure your unit policy includes deductible assessment coverage
- If you rent your unit, have landlord’s insurance and require tenants to carry renters’ insurance
Why Work with a Broker Who Knows Strata
Strata insurance is complex — and the stakes are high. With millions of dollars in shared property at risk, both the strata corporation and individual owners need coverage that fits their unique situation.
We understand strata developments of all sizes. Whether you’re on a strata council or an individual owner, our licensed brokers will:
- Review your current policies for gaps
- Explain your risks in plain language
- Provide competitive coverage options from multiple insurers
- Offer same-day service for most policies
FAQs About Strata Insurance in BC
Do I still need my own condo insurance if my strata corporation has a policy?
Yes. The strata’s policy covers the building and common property, but it won’t cover your personal belongings, unit upgrades, or certain liabilities.
What is a deductible assessment, and why does it matter?
If a claim originates in your unit, you may have to pay part — or all — of the building policy’s deductible, which can be tens of thousands of dollars. Deductible assessment coverage on your unit policy can protect you.
How often should a strata corporation review its insurance coverage?
The Strata Property Act requires annual review. Best practice is to update your insurance appraisal every three years and review deductibles, coverage limits, and policy changes each year.
Does strata insurance cover earthquakes or floods?
Not automatically. These are optional coverages that strata corporations and owners can add based on location and risk.
Can a small strata, like a duplex, skip building insurance?
No. Even small stratas must insure common property to full replacement cost.
Protect Your Strata Investment
Strata living offers many benefits — but it also means sharing responsibility for the property’s upkeep, finances, and insurance. The right strata insurance coverage protects not just the building, but also your personal investment and financial future.
Contact us today to review your strata’s coverage or your unit policy. We’re here to help strata communities feel confident, protected, and prepared.