All strata corporations in BC, regardless of size, must obtain property and liability insurance, including bare land strata corporations and strata-titled duplexes.
1. Property Insurance
A. The strata corporation’s property insurance is for:
• Common property
• Common assets
• Buildings shown on the strata plan, and
• Fixtures built or installed on a strata lot if built or installed by the owner developer as part of the original construction of the strata lot (e.g. the original flooring, cabinets, etc.)
B. Property insurance must be for the full replacement value (which requires a current appraisal) and insure against all major perils, which includes:
• fire, lightning, smoke, windstorm, hail
• explosions
• water escapes
• strikes, riots or civil commotion
• impact by aircraft and vehicles
• vandalism and malicious acts
One surprising fact is that, under the Strata Property Regulations, earthquake insurance is not considered a major peril. However, purchasing a unit in a strata corporation that does not have earthquake insurance can pose significant risks.
2. Liability Insurance
The strata corporation must also obtain and maintain liability insurance to insure the strata corporation against liability for property damage and bodily injury, for a minimum amount of $2,000,000.
3.Strata Homeowner Insurance
It’s important to realize that strata corporation insurance is not the same as strata homeowner insurance. In order to mitigate their risks, many strata owners in BC obtain additional homeowner insurance, which often insures them for:
• Their household contents
• Upgrades made to the unit
• Strata deductible coverage (which protects them in case they are found responsible for paying the strata’s deductible(s).
Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice.
Next week we’ll look at alterations within strata units, as reported on the Form B. If you have any suggestions for other topics you’d like us to cover, please let us know at [email protected].
A little about us:
- We are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance.
- We’ve been in business since 2017 and have completed over 1,800 strata reviews to date province wide.
- Our Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers.
A little about our services:
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Here is a Sample Buyer’s Review that you can look through. If you have some time, we would love to setup a quick chat, to talk more about our review process and go over any specific needs you might have.
Ryan Stenquist & Magurel Mic
Condo Clear Services Inc.