Two policies, one building: strata insurance basics
The corporation insures the building. Owners insure their world inside it, and the deductible gap between the two is where the surprises live.
Strata insurance is two-layered by design. Under section 149 of the Strata Property Act, the strata corporation must insure the common property, common assets, and the buildings, including fixtures built or installed as part of the original construction, for full replacement value against major perils. Owners insure everything the corporation's policy does not reach. Confusion about the boundary is the single most common insurance dispute in strata land.
What each policy covers
| Corporation's policy | Owner's condo policy |
|---|---|
| Structure, common property, original fixtures (as built): standard flooring, cabinets, plumbing as constructed | Contents and personal property |
| Liability for the corporation | Upgrades and betterments (the renovated kitchen exceeds "original") |
| Major perils named in the policy and regulation | Additional living expenses if the unit is uninhabitable |
| Personal liability, and deductible coverage (see below) |
The deductible: the number every owner should know
Water deductibles in BC have climbed to figures that shock people: tens of thousands of dollars on many buildings. Two facts follow. First, the strata may pursue an owner for the corporation's deductible where the owner is responsible for the loss (the classic burst washing-machine hose), under section 158 and the strata's bylaws. Second, owners can buy deductible coverage inside their own condo policy for a modest premium, and every owner should carry it matched to the strata's current deductible. Publishing the current deductibles in the minutes after each renewal is the cheapest risk communication a council can do.
Council's insurance duties through the year
Review coverage annually and report on insurance at each AGM, including coverage amounts and deductibles; the Act requires the insurance to be reviewed and reported to owners, and buyers see the details through the Form B. Keep a current appraisal so "full replacement value" is a documented number rather than a guess; underinsurance discovered after a fire is an unfixable mistake. When the renewal lands, minute it: insurer, coverage, deductibles, premium, and any changes worth flagging to owners.
When a loss happens
Act on safety first, then notify the broker promptly, document everything, and let the adjuster allocate responsibility rather than announcing conclusions in the minutes. The minutes record that a claim was opened and, later, how it resolved; the file keeps the detail. Disputes about deductible chargebacks go to the Civil Resolution Tribunal, where the wording of the bylaws and the quality of the paper trail decide most of them.
Let us handle the minutes themselves
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This page is general information for BC strata councils, not legal advice. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.