Strata Water Deductible Insurance

Every home is unique. So is the insurance that goes with it.

Image of condo owner holding bucket due to water leak from upstairs neighbors representing the importance of Strata water deductible.

Excess Strata Water Deductible Coverage
for Condo Unit Owners

In recent months, a large number of BC Strata Corporations have seen their water damage deductibles increase significantly. In many cases, these new deductibles now far exceed the limits offered on condo unit owners’ policies. This can leave strata owners financially vulnerable in case of an unexpected loss. With InsureBC's Strata Water Deductible Insurance, you can rest assured that you will be protected from the financial burden of high deductibles

Has Your Strata’s Water Deductible Increased Recently?

If your Strata’s Water Deductible is above and beyond the limit offered under your Condo Policy limit, you may be responsible for the difference between the two. This example illustrates the amount that you could be on the hook for if you do not have the right coverage in place.

Strata Corp’s Water Damage or Sewer Backup Deductible
Strata Deductible Coverage on Unit Owner’s Condo Policy
Unit Owners Responsibility

Why are Strata Insurance Deductibles Increasing?

According to BC’s Condominium Home Owner’s Association (CHOA), many Strata Corporations are seeing their insurance rates jump from 40-250%.

There are a variety of reasons for these rate increases such as the hardening of the global insurance market, which has impacted Canadian insurers as well as their re-insurers. However, some other reasons include the following:

Increase in the number of Strata insurance claims
Increase in condo reconstruction costs
Increase in the number of Strata condo developments

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How Does Strata Water Deductible Buy Back Coverage Work?

While a standard condo insurance policy includes coverage for your Strata’s deductible assessment, it is typically capped at $100,000, depending on your insurance carrier. In many cases, these limits are not high enough to cover the entire Strata water deductible assessment. Therefore, if your Strata has a higher water deductible than what is covered on your primary condo policy, you could be responsible for the gap.

To combat these increases, InsureBC has developed a policy to close the gap between the coverage offered on a standard condo policy and the amount required by the Strata Corporation. Our policy addresses the exposure after both the strata corporation has used their policy and the condo unit owner has used theirs, so you won’t be personally responsible to pay the difference.

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Frequently asked Questions

What is strata water deductible, and why would I need to top it up?

As a Condo owner, you have a Strata corporation that has insurance for the building as a whole including shared common areas, in addition to your own condo policy which covers your individual unit. Your strata’s insurance policy has certain deductibles that they would charge each owner in the event of a claim. Your base policy will provide coverage for this in Condo Deductible Protection, so be sure to match this coverage with what your strata requires. Unfortunately, in recent months a large number of BC Strata Corporations have seen their water deductibles increase significantly, which now far exceeds the limit offered by the insurance carrier covering the individual condos. In other words, the strata deductible offered in your base policy can be much lower than what the strata corporation requires. Therefore, to ensure you are not held personally responsible for the difference in the event of a claim, you can purchase a top-up or buy-back coverage to match what the strata requires. Our buy-back option addresses the exposure after both the building policy and the personal condo policy have exhausted their limits, essentially closing the gap.

How does a deductible work with strata insurance?

Strata insurance policies typically have a deductible that applies to water damage claims. This deductible is usually shared among all unit owners and is often a significant amount of money. Strata Water Deductible Insurance covers the amount you would pay in the event of a water damage claim up to the policy limit.

Does Strata Water Deductible Insurance cover my home or condo insurance deductible?

No, Strata Water Deductible Insurance only covers the amount you would pay in the event of a water damage or sewer backup claim under your strata insurance policy.

What is a deductible in insurance?

A deductible is the amount of money you pay out of pocket before your insurance pays the rest in the event of an insured loss. For example, if you have a $1,000 deductible and experience a loss of $5,000, you will pay the first $1,000 and your insurance company will pay the remaining $4,000.

Why should I consider raising my strata water deductible?

Raising your strata water deductible can lower your insurance premium and save you money in the long run. However, it's important to consider whether you can afford to pay a higher deductible in the event of a claim.

Looking to File a Claim?

Our dedicated claims department is committed to making the claims process as smooth and stress-free as possible. Whether you need to file a claim for your home, vehicle, or business, we have the expertise to guide you through the process.

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