Strata insurance deductibles: who pays, and when an owner can be charged
Strata deductibles of $50,000, $100,000 or more for water damage are now ordinary in BC. One failed hose can leave a single owner facing that bill, unless their own policy covers it.
Last reviewed November 10, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.
The short answer
Under section 158 of the Strata Property Act, an insurance deductible on a strata claim is a common expense shared by all owners, and may be paid from the reserve fund or by special levy without a vote. However, the strata may sue an owner to recover the deductible if the owner is responsible for the loss or damage. Many stratas also have a bylaw allowing the charge. Every owner should carry deductible assessment coverage at least equal to the strata's largest deductible.
The rule in section 158
- Common expense. Payment of a deductible on a claim under the strata's insurance is a common expense, contributed to by strata fees calculated in the usual way.
- Recovery. That does not limit the strata's capacity to sue an owner to recover the deductible portion of a claim if the owner is responsible for the loss or damage that gave rise to the claim.
- No approval needed. Strata approval is not required for a special levy or a contingency reserve fund expenditure to cover a deductible the strata must pay to repair or replace damaged property, unless the strata has decided not to repair or replace.
The third point lets council act quickly: repairs do not wait for a general meeting.
What "responsible" means
The Act says "responsible", not "negligent". BC courts and the Civil Resolution Tribunal have read that as a lower standard: an owner can be responsible for a loss that originated in their strata lot from something within their control, even if they did nothing careless. Examples that have led to owners being charged include failed appliance hoses, overflowing fixtures, and leaking hot water tanks.
An owner is generally also answerable for their tenants, occupants and visitors.
An owner is not responsible where the cause was common property, such as a building riser, or something the strata was obliged to maintain.
StrataMinutes can take this off your plate. Repair and approval decisions come back years later. Minutes that record them properly are your protection. Have them prepared for you, free for the first month.
Why the bylaw wording matters
Many stratas have their own bylaw on recovering deductibles, and they are not all alike.
| Bylaw wording | Effect |
|---|---|
| "The owner is responsible for a loss originating in the owner's strata lot" | Broad, similar to the Act |
| "Where the loss is caused by the owner's negligence" | Narrower. The strata may have to prove carelessness |
| "Caused by the owner's act, omission, negligence or carelessness" | Read as a whole, sometimes interpreted as requiring fault |
| No bylaw | The strata relies on section 158(2) |
Tribunal decisions have sometimes held a strata to the narrower standard in its own bylaw. Stratas should have their deductible bylaw reviewed, and owners should read it.
How a strata recovers a deductible
- Establish the cause in writing, from the restoration contractor or plumber.
- Pay the deductible so repairs proceed.
- Write to the owner with the facts, the amount and the basis: section 158 and any bylaw.
- Give the owner a chance to respond, and a hearing if requested. If the strata is relying on a bylaw and section 133, the section 135 steps are mandatory.
- Decide by motion at a council meeting.
- Demand payment. The owner usually passes the letter to their own insurer.
- If unpaid, claim at the Civil Resolution Tribunal or in court. Under section 158(2) the strata "sues" to recover. Limitation periods apply.
A deductible charge cannot be liened against the strata lot. See chargebacks.
Sample minute wording: Water escape of March 9 originating in strata lot 18. Council reviewed the restoration contractor's report and the owner's written response. MOVED and SECONDED that the strata corporation seek recovery from the owner of strata lot 18 of the $50,000 insurance deductible paid on the claim, under section 158(2) of the Strata Property Act and bylaw 34. CARRIED (4 in favour, 0 opposed).
What owners must be told
The strata must review the adequacy of its insurance every year, report on coverage at each AGM, and inform owners and tenants as soon as feasible of any material change in coverage, including any increase in an insurance deductible (section 154). The Information Certificate (Form B) includes a summary of the strata's insurance coverage. Owners should give each update to their own broker.
Protecting yourself as an owner
- Deductible assessment coverage. Ask your broker for the limit, and whether it applies to every peril the strata's policy covers. Compare it with the strata's highest deductible, which may be for water or earthquake.
- Loss assessment coverage for your share of a special levy raised after an insured loss.
- Tell your insurer when the strata's deductibles change.
- Landlords: require tenants to carry tenant insurance with liability coverage, and carry your own landlord policy.
See owner insurance.
Reducing the strata's exposure
- Maintain plumbing and act on engineering and depreciation reports.
- Adopt bylaws on hot water tank age, supply hoses, shut-off valves and water alarms.
- Keep a claims history worth insuring: handle small losses without claims where it makes sense.
- Shop the renewal early, with a current appraisal.
- Keep the reserve fund able to absorb a deductible.
Disputing a deductible charge
An owner who receives a deductible invoice should ask for the contractor's report, the bylaw relied on and the minutes of council's decision, notify their own insurer at once, and request a hearing if they dispute responsibility. The questions are usually factual: where did the water come from, and was that part of the strata lot or common property?
Questions councils and owners ask
Who pays the strata insurance deductible in BC?
It is a common expense of all owners, unless the strata recovers it from an owner who is responsible for the loss.
Does the strata have to prove I was negligent?
Not under section 158, which uses "responsible". A strata's own bylaw may set a higher standard.
Does the strata need a vote to pay a deductible?
No. Approval is not required for a levy or reserve fund expenditure to cover a deductible for repairs.
Will my own insurance pay a deductible charge?
If your policy includes deductible assessment coverage with a high enough limit. Check with your broker.
Can a deductible chargeback be liened?
No.
Deductible decisions belong in the minutes
The claim, the payment, the decision to recover. StrataMinutes prepares minutes that record each step by lot number.
Free for 30 days, then $29 a month. Cancel anytime.
For a 30-lot strata, that is under $1 a lot each month. Have the strata pay: free council approval kit.
This page is general information for BC strata corporations, not legal advice. Your strata's own filed bylaws may differ from the Standard Bylaws. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.
Related guides
Water Damage Responsibility
Owner Insurance
Strata Chargebacks
Strata Insurance
Emergency Repairs
Reserve Fund Spending Rules