HUB Real Estate Practice Damages Under a Strata Deductible

One of the most frequent questions we get asked as a Strata Insurance Broker from Strata Agents,
Strata Councils and Strata Unit Owners is:

Who is ultimately responsible to pay for the repair and/or replacement of damaged
property when the damages are under the Strata Corporation’s insurance deductible?
The legal community believes that the answer is relatively straight forward, in that if the damages are
below the Strata Corporation’s deductible, the responsibility to repair and/or replace falls to the party
that is ordinarily responsible for the repair and maintenance of the damaged property under the Strata
Corporation’s bylaws. Per the Strata Property Act of BC standard schedule of bylaws, the ‘responsibility’
in the event of a loss follows these guidelines:

Loss or damage to individual strata lot:
If there is loss or damage to an individual strata lot that is less than the amount of the strata’s insurance
deductible, it is therefore not a strata insurance claim, and the responsibility of repairing the loss or
damage falls back to the strata lot owner.

Loss or damage to common property:
The same principle applies to loss or damage to common property. If the loss or damage is less than the
strata’s deductible, the responsibility of repairing the loss or damage falls back to the Strata
Corporation.

Summary
Regardless of the source, if a strata lot owner suffers damage to their strata lot that is less than the
amount of the strata’s insurance deductible, the Strata Corporation is not responsible to pay or to
contribute to the loss or damage.

It is important that your unit owner insurance compliments the strata’s insurance policy to ensure
there are no gaps in coverage that could leave you paying thousands in uncovered losses. If such gaps
exist, you could be held legally liable for damages caused to your neighbour’s personal belongings and
any unit improvements. We recommend that you take the time to review the terms and conditions of
your policy with your insurance broker to ensure you have adequate coverage in the event of a claim.

Disclaimer: This bulletin is intended to provide readers with general information only. Readers are urged
not to rely simply on the content of the bulletin, but to consult with appropriate professionals on a case
by case basis.