B.C. Strata Insurance Deductibles: Owner Liability & Coverage
A strata corporation's deductible is generally a common expense, but the Strata Property Act allows the corporation to recover the deductible from an owner who is responsible for the loss. The Province warns that current strata deductibles can be C$100,000 to C$750,000 or higher.
Who initially pays the strata deductible?
Section 158 of the Strata Property Act treats the insurance deductible for a strata corporation claim as a common expense. The Act also allows the corporation to use a special levy or the contingency reserve fund to cover the deductible needed to repair or replace damaged property without the usual owner approval that might otherwise be required.
When can the strata recover the deductible from an owner?
The Act preserves the strata corporation's ability to recover the deductible from an owner who is responsible for the loss or damage that gave rise to the claim. Provincial guidance emphasizes that an owner can be found responsible even when the owner was not negligent in the ordinary sense, so the policy's strata-deductible coverage deserves explicit review.
Why the amount can be financially significant
The Province says strata corporation deductibles can range from C$100,000 to C$750,000 or higher depending on the building and claims history. An owner should therefore compare the current corporation deductible with the deductible-assessment or loss-assessment protection shown on the personal condo policy rather than relying on an old policy limit.
Water losses are a practical example
Provincial guidance uses a failed dishwasher water hose as an example of a loss that can originate in an owner's unit and damage common property or other strata lots. The example illustrates why responsibility for a loss and negligence are not necessarily the same legal question under strata insurance.
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.
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