Strata InsuranceJuly 9, 2026 · 7 min read

What Does Strata Insurance Actually Cover in BC?

BC strata insurance covers the building, common property, and original fixtures at full replacement value — but not your contents, upgrades, or a charged-back deductible.

In BC, your strata corporation's insurance covers the building's common property, common assets, and the original fixtures inside each strata lot — walls, floors, cabinets and built-ins roughly as the developer installed them — on a full-replacement-value basis, plus at least $2 million in liability coverage. What it does not cover is your belongings, the upgrades you've made, your living costs if you're displaced, or a deductible charged back to you. Those are your own policy's job.

Is strata insurance mandatory in BC?

Yes. Under BC's Strata Property Act (section 149), every strata corporation must obtain and maintain property insurance. This isn't a council choice or something owners can vote to skip. The policy — often called the "master" or "building" policy — has to be in place, and it has to meet a few legal minimums we'll walk through below.

The mental model that keeps everything straight: the strata policy insures the building and shared property for everyone, and your personal policy fills the gaps for your unit and your life inside it. Neither one replaces the other.

What the strata policy must insure

Section 149 requires the strata to insure, on a full-replacement-value basis:

Common property — hallways, lobbies, elevators, the parkade, roof, exterior walls, the grounds, and shared mechanical systems.
Common assets — things the strata owns, like landscaping equipment or furnishings in an amenity room.
Buildings shown on the strata plan, and
Fixtures built or installed by the owner developer as part of the original construction of each strata lot.

That last point is the one owners miss. The strata policy generally reaches inside your unit — but only to the original builder's standard. Picture the flooring, cabinets, countertops, and fixtures as they were the day the building was finished. That baseline is what gets rebuilt after an insured loss.

"Full replacement value" means the policy is meant to cover the cost of rebuilding, not the market or assessed value of the property. To keep that number honest, insurers generally expect an appraisal updated every couple of years, and keeping it current is one of council's real jobs.

Which perils are covered

The Strata Property Regulation sets a list of "major perils" the policy must insure against, including fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes or riots, impact by aircraft or vehicles, and vandalism. Water escape — burst pipes, overflows, failed hoses — is the peril that drives the most claims in BC by a wide margin.

Two big perils are not on the mandatory list:

Earthquake. Given where we live, most BC stratas buy earthquake coverage anyway — but it's a separate coverage with its own, usually percentage-based, deductible.
Overland flood. Also typically an add-on, and harder to obtain for buildings in flood-prone areas.

Your strata's bylaws can require additional perils beyond the legal minimum, so it's worth reading them alongside the policy.

Liability insurance

Separate from property coverage, section 152 requires the strata to carry liability insurance of at least $2 million. This protects the corporation if someone is injured on common property or the strata is found responsible for damage. Many stratas carry more — $5 million or higher is common — and for good reason. It's inexpensive relative to the protection it buys.

Where the strata policy stops: the "standard unit" line

Here's the boundary that causes the most confusion. The strata policy rebuilds your unit to the original builder's standard — not to the upgraded kitchen or the hardwood you put in after you bought.

Some stratas formally define a "standard unit" (section 155) by a 3/4 vote, writing down exactly what the strata policy will and won't cover inside a lot. If your strata has done this, get a copy — it tells you precisely where your responsibility begins. If it hasn't, the default is the original-construction standard from section 149.

Either way, the practical takeaway is the same: your improvements and upgrades are yours to insure.

What strata insurance does NOT cover

The master policy is not designed to cover:

Your personal belongings — furniture, electronics, clothing, everything you'd take if you moved.
Betterments and improvements — renovations and upgrades above the original standard.
Additional living expenses — hotel and meals if your unit is uninhabitable after a covered loss.
Your personal liability — if you're responsible for damage or injury.
A deductible charged back to you — often the biggest surprise of all.

What every owner should carry: your own unit policy

This is why a personal strata/condo unit policy (sometimes called "condo insurance" or a "unit owner" policy) matters. A good one covers your contents, your improvements, your living expenses, and your personal liability — the exact gaps above.

The single most important piece to ask your broker about is loss-assessment coverage, often paired with a specific strata-deductible endorsement. If the strata's policy responds to a loss and the corporation charges its deductible back to you, this is the coverage that can pay it. With water-damage deductibles now routinely reaching into the tens or hundreds of thousands of dollars, the amount you carry here really matters — we cover the numbers in Strata Insurance Deductibles in BC.

The deductible: the part that trips owners up

When the strata policy responds to a claim, the corporation still has to pay the deductible first. Under section 158, that deductible is a common expense, and the strata can fund it from the contingency reserve fund or a special levy without the usual 3/4 vote. But the strata may also be able to recover the deductible from an owner who was "responsible" for the loss — and "responsible" isn't always the same as "negligent." Because this is fact-specific and has been fought over in the courts, it's worth reading Water Damage and the Strata Deductible and getting advice before charging anyone back.

What councils should do each year

Keep the appraisal current so full-replacement-value coverage stays accurate.
Disclose coverage to owners. The Act requires the strata to tell owners and tenants as soon as feasible about any material change in coverage, including a deductible increase, and to include an insurance summary on the Form B Information Certificate.
Circulate the insurance summary so owners can size their own policies.
Review perils and limits annually, including whether to add or adjust earthquake coverage.
Read your bylaws for any perils or responsibilities beyond the statutory minimum.

Copy-paste: request your strata's insurance summary

To: [Strata manager / council] Subject: Request for current insurance summary — Strata Plan [####] Could you please send me the strata's current certificate of insurance / insurance summary, including: - The named perils and any exclusions - The replacement value and the date of the most recent appraisal - The deductible for each peril (water damage, fire, sewer backup, earthquake) - The liability limit - Whether a "standard unit" has been defined I'd like to make sure my personal unit policy and loss-assessment coverage are sized correctly. Thank you.

Frequently asked questions

Does strata insurance cover the inside of my unit? Partly. It generally covers the original builder's fixtures — walls, floors, and built-ins as first installed — on a full-replacement basis. It does not cover your belongings or upgrades you've made. Those need your own unit policy.

Does BC strata insurance cover earthquakes? Not automatically. Earthquake isn't on the Act's list of required perils, so it's a separate coverage. Most BC stratas buy it, but it carries its own (usually percentage-based) deductible — check your policy.

Do I still need my own insurance if the strata is insured? Yes. The master policy doesn't cover your contents, improvements, living expenses, personal liability, or a deductible charged back to you. A personal unit policy with loss-assessment coverage fills those gaps and is usually inexpensive.

Is the strata's deductible my problem? It can be. If you're found responsible for a loss, the strata may recover its deductible from you — which is exactly what loss-assessment coverage is for.