Risk & Conflict | Insurance
Strata Insurance and Deductibles in BC
Insurance is normally the largest line in a small strata budget, and the deductible is the part that can ruin an owner rather than just annoy them. A washing machine hose in one unit can produce a repair bill the whole building claims on, and a deductible the corporation is entitled to send back to the owner it started with.
Key Takeaways
- 01The strata insures the building as built and common property. You insure everything you added, plus your liability.
- 02The deductible is a common expense by default under section 158(1).
- 03Section 158(2) lets the strata sue a responsible owner to recover that deductible.
- 04Water deductibles moved into six figures for many BC buildings after the 2019 to 2021 crisis.
- 05Your personal policy's deductible coverage limit should match the building's actual deductible.
Who Insures What
The strata corporation
Strata Property Act s. 149-150Common property, common assets, and the building as shown on the strata plan, including fixtures built or installed by the owner developer. Full replacement value, plus liability.
The individual owner
Strata Property Act s. 161Improvements beyond original fixtures, contents, personal liability, loss of rental income beyond what the strata carries, and coverage for the strata's deductible if it gets charged back.
A tenant
Tenant's own policyTheir own contents and liability. Neither the strata policy nor the owner's policy covers a tenant's belongings.
How a Deductible Becomes One Owner's Problem
This is the sequence that catches owners out. Each step is ordinary. The combination is what turns a building-wide claim into a personal bill.
A loss happens
Water escapes from a unit, or a fire starts, and the damage crosses into common property or another strata lot.
The strata claims on its policy
The corporation's insurance responds to repair the building. The deductible is the portion the policy does not pay.
The deductible is a common expense by default
Section 158(1) says paying the deductible is a common expense contributed through strata fees. If it stopped there, all four owners would split it.
Unless the strata pursues the responsible owner
Section 158(2) preserves the corporation's ability to sue an owner to recover the deductible where that owner is responsible for the loss. This is where a shared expense becomes one owner's bill.
Your personal policy either responds or it does not
Condo or strata-lot policies carry a specific limit for the strata's deductible. If the building's water deductible is $150,000 and your policy covers $25,000, the gap is yours.
The Number To Look Up Today
Find the water damage deductible on your building's certificate of insurance, then find the strata deductible coverage limit on your own policy. If the second number is smaller than the first, the difference is your personal exposure. This takes ten minutes and is the single most useful thing an owner in a small strata can check.
Why Deductibles Climbed So Far
Between 2019 and 2021 the BC strata insurance market repriced sharply. Insurers left the province, premiums rose steeply, and the deductibles that remained were pushed up as a condition of coverage. Water damage was the loss type driving it, so water deductibles moved furthest, from a typical $25,000 to $50,000 band into six figures for many buildings.
Premiums have stabilised since, and the market in 2026 is calmer than it was at the peak. Deductibles did not come back down with them. That is the part owners keep missing: the crisis ended, but the risk it transferred onto individual owners stayed where it landed.
Best For
- ✓ Owners who carry deductible coverage that actually matches the building's water deductible
- ✓ Small stratas that invest in leak detection and shutoff valves rather than absorbing claims
- ✓ Buildings that review the certificate of insurance with all owners at every renewal
Usually Fails When
- ✕ The owner's personal policy carries a token deductible limit chosen years ago
- ✕ Nobody has read the bylaws to see what standard applies to deductible recovery
- ✕ The building has had a water claim and the budget was not adjusted for the renewal
What To Verify Before Spending Money
- → The water damage deductible on the current certificate of insurance
- → Your own policy's strata deductible coverage limit, and whether it matches
- → Whether your bylaws narrow section 158(2) to require negligence
- → Whether the strata policy's replacement value reflects current construction costs
Common Questions
Who pays the strata insurance deductible in BC? +
By default the strata corporation pays it as a common expense, funded through strata fees, under section 158(1) of the Strata Property Act. But section 158(2) states that this does not limit the corporation's ability to sue an owner to recover the deductible if that owner is responsible for the loss that gave rise to the claim.
Does 'responsible' mean I have to be negligent? +
The Act does not define it, and this is genuinely contested ground rather than a settled rule. Some BC decisions have treated an owner as responsible where the loss originated in their strata lot without requiring proof of negligence; other outcomes have turned on the wording of the strata's own bylaws, which can set a stricter standard such as requiring negligence. Read your bylaws, and get legal advice on a real claim rather than relying on a general summary.
How high are BC strata water damage deductibles now? +
Much higher than they were before 2020. Water deductibles that once sat in the $25,000 to $50,000 range moved into six figures during the 2019 to 2021 insurance crisis, and many BC buildings now carry water deductibles well above $50,000. The specific number is on your building's certificate of insurance, and that is the figure your personal policy needs to match.
Do I still need my own insurance if the strata has a policy? +
Yes. The strata policy covers the building as originally built and common property. It does not cover your contents, your upgrades beyond original fixtures, your personal liability, or the deductible if it is charged back to you. Section 161 of the Act specifically contemplates owners insuring all of these separately.
Is insurance cheaper for a fourplex than a condo tower? +
Per building, yes, because there is less to insure and fewer of the risk features underwriters price for, such as elevators, underground parkades, and long shared corridors. Per unit it is often less of a bargain than owners expect, and it is still normally the largest line in a small strata's budget.
What can a small strata do to keep premiums down? +
The controllable items are claims history and water risk. Leak detection on supply lines, shutoff valves that owners actually know how to use, and replacing supply hoses on appliances all reduce the loss type that drives BC strata premiums. One water claim on a four-unit building changes the renewal for everyone.
This page explains how the Strata Property Act allocates insurance responsibility. It is general information, not legal or insurance advice. Deductible recovery outcomes turn on the specific bylaws and the facts of the loss, so talk to a strata lawyer or your broker about an actual claim.
See Also
Official Sources Referenced
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