Strata Tip of the Week – The Importance Of Homeowner Insurance

When buying into a strata corporation, many consumers assume that the strata’s insurance will fully protect them in the event of a loss. In reality, strata insurance has limitations and deductibles that can leave owners with significant out-of-pocket expenses unless they also carry their own homeowner insurance.

The strata corporation’s insurance typically covers:

• Common property
• Common assets
• Buildings shown on the strata plan, and
• Fixtures built or installed by the owner developer as part of the original construction (e.g., original flooring, cabinets, etc.)

If a loss event (such as an earthquake, leak, fire, etc.) occurs, the strata’s insurance policy will usually include deductibles that must be paid before coverage applies. Depending on the circumstances, an owner may be responsible for paying all or part of these deductibles. To avoid having to pay these deductibles out of pocket, many strata owners in BC obtain additional homeowner insurance, which typically covers:

• The contents in their strata lot
• Liability if someone gets injured in their strata lot
• Relocation costs if their unit is damaged and becomes unliveable for a period of time
• The strata corporation’s deductibles (if the owner is found responsible)

It is always a good idea that consumers take a copy of the strata’s insurance policy to their insurance broker and discuss:

• Their ability to obtain additional coverage (we’ve seen cases where the strata’s deductibles are so high that owners are unable to obtain additional homeowner insurance to cover those risks), and
• The cost of obtaining additional coverage

By having a discussion with their insurance broker, consumers will better understand the risks they face, as well as the costs of mitigating them.

That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at [email protected].

Author: Mugurel Mic; Last Edited: August 27, 2025

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