Earthquake Insurance for B.C. Strata Condos: Deductibles & Owner Gaps
Earthquake is not one of the mandatory major perils listed for B.C. strata corporation property insurance. The Province strongly advises earthquake-prone strata corporations to consider the coverage, while owners should separately review their own earthquake deductible and their share of the corporation's earthquake deductible.
Earthquake is optional for the strata corporation
British Columbia's regulation lists mandatory major perils such as fire, smoke, windstorm, hail and water escape, but earthquake is not on that list. The Province says strata corporations in earthquake-prone areas are strongly advised to purchase earthquake insurance, which makes the annual corporation insurance summary an important document for owners.
The earthquake deductible can be percentage-based
Unlike many fixed-dollar deductibles, the Province says strata earthquake deductibles are typically expressed as a percentage of the building's full replacement value, commonly 10% to 20%. That means the deductible can be very large and is not calculated as a percentage of the individual claim amount.
The owner has two earthquake questions
A unit owner should review the earthquake coverage and deductible on the personal condo policy and also understand the owner's potential share of the strata corporation's earthquake deductible. These are different exposures and should not be collapsed into one headline deductible number.
Replacement value matters at the corporation level
Because an earthquake deductible can be tied to the building's full replacement value, changes in construction and rebuilding costs can affect the dollar size of the deductible even when the percentage stays the same. The annual insurance review should therefore use the current corporation policy rather than an older AGM package.
Use the current strata insurance summary
B.C. requires strata corporations to review insurance annually and report on coverage at the AGM. Material changes, including deductible increases, must be communicated to owners and tenants. Those updates are a practical trigger to review the personal condo policy.
Open the B.C. strata insurance hub →