Strata owner and tenant insurance

Strata homeowners and tenants are strongly advised to purchase homeowner or tenant insurance to meet their needs. Strata corporation insurance does not cover personal liability, household contents, expenses for owners or tenants to live elsewhere after a loss, or paying the strata corporation's insurance deductible.

Learn more on this page
Insurance for strata homeowners and investors 
Annually reviewing strata homeowner insurance
Insurance for strata tenants
After a loss
Home warranty insurance for new homes

For more complete information, please consult with an insurance broker who is knowledgeable about insurance for strata homeowners and tenants.

Insurance for strata homeowners and investors

Strata homeowners and investors are strongly advised to purchase insurance for their condo, townhouse, duplex, or other type of strata residence or investment. 

This insurance is often called a “condo policy” and it will help to cover personal insurance needs such as: replacing household contents; living elsewhere in the case of an insured loss; upgrades to the strata lot, and paying for a strata corporation’s insurance deductible (if an owner is found to be responsible). These expenses are not covered by the strata corporation’s insurance policy.

A strata owner can purchase insurance for the following: 

• Personal property e.g., replacing household contents such as furniture, clothing, household goods, electronics, etc.
  • It is helpful for the strata owner to have a general sense of what it would cost to replace contents in the unit, including upgrades to the unit such as flooring and kitchen appliances. 
  • Please note: a strata unit (or “condo”) policy differs from a singe-family homeowner’s policy in an important way. When insuring a house, the value of the contents (furniture and other belongings) is estimated as a percentage of the value of the house. However, when insuring a strata unit, the strata owner is asked to provide an estimated dollar value to replace contents. 
  • Owners should also insure, or be aware of policy limits, for high-value items such as jewellery, sports equipment, and musical instruments. 
• Personal liability for any bodily injury or property damage unintentionally caused to others.
• Additional living expenses, over and above the normal costs of living, in the event of an insured loss. For example, if there is a fire and the strata owner needs to live elsewhere while the strata lot or building is being remediated. 
• Improvements (“betterments”) to the strata lot made by the current and previous owners, up to a stated limit.
• Additional coverage in case the strata corporation’s insurance coverage is inadequate. For example, additional insurance coverage can help pay for special levies if the amount of the strata corporation’s insurance deductible or the cost of the repairs exceeds the strata corporation’s policy limits. 
• Fixtures installed by the owner-developer if, as per Strata Property Regulation 9.1 (1), these can be moved without damaging the building, such as fridges, ovens, microwaves and other items. 
• Losses to common property or other owners’ units for which the strata owner, or the strata owner’s visitors, are deemed responsible.
• The strata corporation’s insurance deductible, as a strata owner may be required to pay the strata corporation’s insurance deductible. This could be a significant expense as strata corporation insurance deductibles can range from $100,000 to $750,000 or higher. Strata owner insurance can cover some or all of the cost of the strata insurance deductible.
  • If an insurance claim for a strata corporation originates in an owner’s unit, then the strata corporation may recover the cost of the insurance deductible from the owner if the owner is deemed responsible for the loss.
  • A strata owner can be deemed responsible, and required to pay the strata corporation’s insurance deductible, even if not “at fault” or negligent.
  • Court cases have determined that responsibility for an insurance claim does not mean that the strata owner is at fault or negligent. For example, if a dishwasher water hose prematurely breaks and overflows in a strata unit and this causes water damage to common property and other strata lots, the strata owner can be deemed responsible. 
• Other insurance coverage can include insurance for a home-based business, water damage, sewer back up, major upgrades done to the unit, if the unit is left vacant for periods of time, or if the unit will be occupied by a tenant. 
• Insurance brokers and landlord associations also recommend that strata owners who rent their units to tenants have their tenants agree to purchase tenant insurance (more details on tenant insurance below).
• Earthquake insurance, strata owners should consider purchasing earthquake coverage for their needs. The strata owner should discuss with an insurance broker: 
  • the cost of the deductible for the owner's earthquake insurance, and 
  • the owner’s share of the strata corporation's earthquake insurance, if the strata corporation has purchased earthquake insurance.

Bare land endorsement

In addition to the insurance listed above, bare land strata owners should also consider “the bare land endorsement” for the homeowner package to ensure that adequate coverage is purchased.   

In a bare land strata corporation, the owner of the strata lot is responsible for the insurance, repair, and maintenance of buildings on the strata lot (e.g. a home and garden shed). 

A bare land strata plan:

• will usually be labelled as a bare land strata on the registered strata plan
• will not show individual homes, or other buildings, on the individual strata lot; however, strata corporation buildings such as a club house or a pump house will be depicted.

Annually reviewing strata homeowner insurance 

Every year the strata owner should discuss insurance for their strata lot, and exclusions, with a knowledgeable strata insurance broker. 

When meeting with the insurance broker, it is helpful for the strata owner to have a copy of the strata corporation’s insurance policy, or summary, with them. The broker can review the policies together so that any gaps in coverage between the two policies can be minimized or eliminated.

• The strata corporation’s insurance is discussed each year at the strata corporation’s annual general meeting. 
• Often a summary of the strata corporation’s insurance policy is provided to owners at the annual general meeting. 
• Or a copy of the insurance summary can be obtained from the strata council or the strata property manager. 
• A summary of the strata corporation insurance must also be attached to the Form B: Information Certificate when a Form B is requested by an owner or potential purchaser. 

Strata corporations must also notify strata owners and tenants as soon as possible about any material change to the strata corporation insurance policy such as a loss or reduction of coverage or a change to deductibles. 

If there is a substantive change to the strata corporation’s insurance, owners are advised to discuss any changes with their insurance broker as soon as possible, and before their annual renewal date, to get advice on whether their unit policy should be amended.  

Depreciation reports

Depreciation reports are valuable tools in helping owners repair and maintain their buildings and infrastructure. Timely repair and maintenance helps to prevent insurance losses and damage and keep insurance deductibles as low as possible. 

• In B.C., strata corporations with five or more units must obtain a depreciation report every five years. 
• New strata corporations are required to get depreciation reports within 2 years if established between July 1, 2024 and June 30, 2027 and within 18 months if established on or after July 1, 2027.

Learn more about strata depreciation report requirements: https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/operating-a-strata/repairs-and-maintenance/depreciation-reports/depreciation-report-requirements#overview

Insurance for strata tenants

Tenants (renters) are advised to purchase insurance to cover their needs. Often a landlord will require a tenant to obtain tenant insurance and renew the policy annually. 

The strata corporation’s insurance and the landlord’s (strata owner’s) insurance does not cover the needs of tenants, including household contents and expenses for living elsewhere if a strata lot or building needs to be remediated.

Personal liability coverage is also recommended as tenants can be held responsible for damage they, or their visitors, cause to the building or common property.  

Tenant insurance can be purchased for:

• personal property, e.g., household contents such as furniture, clothing, household goods, electronics, etc.
• personal liability for any bodily injury or property damage unintentionally caused to others
• additional living expenses over and above the normal cost of living in the event of an insured loss

Tenants should also insure, or be aware of policy limits, for, high-value items such as jewellery, sports equipment and musical instruments. 

A tenant can also purchase insurance coverage for: a home-based business, water damage, sewer backup, and earthquake (the tenant should discuss the cost of the earthquake deductible with an insurance broker).

Tenants should review and discuss insurance, and exclusions, each year with a knowledgeable insurance broker when they renew insurance. 

After a loss

After a loss or a change in insured property and assets it is important for the strata owner or tenant to immediately contact the insurance broker and the strata council. Insurance providers may also have other requirements for insurance holders. 

Home warranty insurance for new homes

Usually new (and newer) strata developments in B.C. have home warranty insurance. 

Homes built by licensed residential builders are covered by mandatory, third-party home warranty insurance. As a minimum, this coverage includes: 2 years on labour and materials (some limits apply), 5 years on the building envelope, and 10 years on structure.

The warranty is attached to the home, not to the owner of the home, and remains in effect upon the re-sale of the home until the coverage expires.

Strata-titled homes have two policies of home warranty insurance, one on the home and another on the common property. 

When the coverage of a new strata-titled home commences, it is possible that the coverage on the related common property has already started or even ended as coverage on the common property of strata-titled buildings starts when the first unit in the building is occupied or sold.

Owners need to understand the insurance policies and warranties in effect for their strata lot and strata corporation. Owners of strata properties that are under 10 years of age or that recently had major renovations should ask their strata council for copies of policy and warranty summaries.

Learn more about B.C.'s home warranty insurance for new homes at BC Housing's Licensing and Consumer Services (formerly the Homeowner Protection Office): https://www.bchousing.org/licensing-consumer-services/new-homes/home-warranty-insurance-new-homes

References:
Strata Property Act Sections: 149-162, 194 (4)
Strata Property Act Regulations:  9.1-9.2

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