Insurance for strata owners: what the strata's policy does not cover
"The strata has insurance" is true and dangerously incomplete. The strata's policy protects the building. It does not protect your belongings, your upgrades, your hotel bill or, in many cases, you from the deductible.
Last reviewed November 10, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.
The short answer
The Strata Property Act does not require owners to insure, unless your strata's bylaws do, but the strata's policy covers only common property, the building and original fixtures. An owner's own policy should cover contents, improvements and betterments, additional living expenses, personal liability, and deductible and loss assessments, with the deductible assessment limit at least as high as the strata's largest deductible (section 161 sets out what owners may insure).
What the strata's policy covers
The strata corporation must carry:
- Property insurance on common property, common assets, buildings shown on the strata plan, and fixtures built or installed on a strata lot by the owner developer as part of the original construction, on the basis of full replacement value, against major perils (section 149). Major perils include fire, smoke, windstorm, water escape, vandalism and others listed in the Regulation.
- Liability insurance against liability for property damage and bodily injury, of at least $2,000,000 (section 150 and Regulation 9.2).
It may also carry errors and omissions insurance for council members, and insurance for other perils such as earthquake, if the owners choose. Owners, tenants and occupants are named insureds under the strata's policy (section 155). Bare land stratas are different: the strata's policy does not cover buildings on the lots, so owners insure their own homes.
The five gaps
| Gap | Why the strata's policy does not help |
|---|---|
| Your belongings | Contents are not covered at all |
| Upgrades | Only original, developer-installed fixtures are covered. New floors, counters and built-ins are yours to insure, including upgrades made by previous owners |
| Somewhere to live | Hotel and rent while your unit is repaired are not covered |
| The deductible | The strata may recover it from an owner who is responsible for the loss |
| Your liability | Damage or injury you cause to others |
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.
What an owner's policy should include
- Contents, at replacement cost.
- Improvements and betterments. Enough to rebuild all upgrades in the unit.
- Additional living expenses.
- Personal liability.
- Deductible assessment. Pays a strata deductible charged to you. Check the limit against the strata's highest deductible, and ask whether separate limits apply for water, sewer backup and earthquake.
- Loss assessment. Pays your share of a special levy raised because the strata's insurance was not enough.
- Unit additional protection or contingent coverage, for the unit itself if the strata's insurance fails to respond fully.
- Sewer backup, overland water and earthquake, which are often optional.
Section 161 confirms that an owner may insure against perils not insured by the strata, for amounts above the strata's coverage, fixtures and improvements the strata does not insure, loss of rental value, and liability.
The numbers to ask for
From the strata, usually on the insurance summary given at the AGM and with the Form B:
- the deductible for each peril: all other losses, water, sewer backup, flood, earthquake,
- the insured replacement value and the date of the last appraisal, and
- whether the strata has a deductible chargeback bylaw.
The strata must inform owners as soon as feasible of any material change in coverage, including an increased deductible (section 154). Send every such notice to your broker.
Can the strata require owners to insure?
The Act does not, but a strata may pass a bylaw requiring owners to carry insurance, commonly liability and deductible coverage. Enforcement is by the usual bylaw process. Even without a bylaw, the financial exposure is the real reason to insure.
Landlords and tenants
- Landlords need a policy written for a rented unit: improvements, loss of rental income, liability, and deductible assessment. An ordinary owner-occupier policy may not respond.
- Tenants need tenant insurance for their contents and liability. Many landlords require it in the tenancy agreement.
The strata may recover a deductible from an owner where the owner's tenant caused the loss, so the landlord's coverage matters. See landlord responsibilities.
If something happens
- Stop the damage and stay safe.
- Report to the strata manager or council.
- Call your own insurer the same day, even if you think the strata's policy applies.
- Photograph everything before cleanup.
- Keep receipts for emergency expenses.
- Forward any letter from the strata about a deductible to your insurer immediately.
See water damage responsibility.
When buying
Ask for the insurance summary and read the deductibles before removing subjects. Get a quote for your own policy with the right deductible assessment limit: in a building with very high deductibles, coverage can be costly or hard to place. See strata documents when buying.
Questions councils and owners ask
Is condo insurance mandatory for strata owners in BC?
Not under the Act, though your strata's bylaws or your mortgage lender may require it.
Does the strata's insurance cover my contents?
No.
What is deductible assessment coverage?
Coverage in an owner's policy that pays a strata insurance deductible charged to that owner.
Are my renovations covered by the strata's policy?
No. Only original fixtures installed by the developer are covered.
How much deductible coverage do I need?
At least as much as the strata's largest deductible. Ask the strata for its current figures.
Know what your strata has decided about insurance
Coverage and deductible changes are reported at the AGM and recorded in minutes. If you are on council, StrataMinutes prepares them for you.
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
Insurance Deductibles
Water Damage Responsibility
Strata Insurance
Landlord Responsibilities
Strata Documents When Buying
Strata Chargebacks