How Much Is Strata Insurance and What Does It Cover in British Columbia?
This answer covers the law of British Columbia.
How much strata insurance costs depends on your strata, but the premium is a common expense paid from the operating budget, so it flows into your strata fees. That budget is approved by majority vote at the AGM. Insurers must give 30 days' notice of non-renewal or material change, and the strata must review its insurance annually and report on coverage at each AGM.
The strata's policy covers common property, common assets, buildings on the strata plan and fixtures installed by the owner developer at original construction, but not personal contents, household appliances generally, personal liability or living expenses after a loss. Individual homeowner insurance does not cover the strata corporation, and an owner may insure their lot and fixtures for perils the strata does not insure or amounts above its coverage, as well as improvements and liability.
Deductibles on a strata policy can range from $100,000 to $750,000 or more, and a deductible is a common expense paid through strata fees, though the strata can sue an owner responsible for the loss to recover it. Your own unit policy and your strata's bylaws are worth reviewing with an insurance broker or lawyer.
Key takeaways
- Premiums are a common expense paid from the operating budget approved by majority vote at the AGM, so they flow into your strata fees.
- The strata's policy covers common property, common assets, buildings on the strata plan and original developer fixtures, but not personal contents, personal liability or living expenses after a loss.
- An owner may insure their lot and fixtures for perils the strata does not insure or amounts above its coverage, plus improvements and liability.
- Strata deductibles can range from $100,000 to $750,000 or more, are paid through strata fees, and the strata can sue an owner responsible for the loss to recover them.