How to Handle a Strata Insurance Claim in BC

What the strata's policy actually covers

A common and expensive misunderstanding is that strata insurance stops at common property. It doesn't. Under section 149 of the Strata Property Act, the strata corporation must insure common property, common assets, the buildings shown on the strata plan, and fixtures built or installed on a strata lot by the owner developer as part of the original construction — on a full-replacement-value basis. The original building, including the inside of strata lots, is generally on the strata's policy.

What the strata policy does not cover is the owner's side: improvements made after original construction, non-original fixtures, contents, liability, loss of rental value and deductible exposure. Section 161 lets owners insure exactly those gaps, which is why every owner needs their own policy alongside the strata's. Our council's guide to strata insurance covers what to look for at renewal.

Who files the claim

The claim on the strata's policy belongs to the strata corporation, not to an individual owner. Council — or the property manager, if there is one — reports the loss to the strata's broker and manages the file. An owner who discovers damage should report it to council immediately, and separately notify their own insurer about their contents, improvements and any deductible they may be asked to cover.

Getting this wrong costs time: owners who wait to hear from the strata's insurer often miss the notice period on their own policy.

Steps for the council

1. Make the property safe and stop the loss. Emergency repairs to prevent further damage come first.
2. Report the loss to the broker promptly. Late reporting is a common reason for a reduced or refused payout.
3. Document everything. Photographs before remediation starts, the cause if it is known, invoices, and a log of who was told what and when.
4. Get the deductible in writing. Water-damage deductibles in BC are frequently five or six figures, and the number drives every decision that follows.
5. Decide about repair. The strata generally must repair damaged common property; a decision not to repair or replace is a separate step under section 159 and needs a 3/4 vote.
6. Tell owners early. Owners need to know whether they are likely to face a deductible chargeback or a levy before they hear it as a rumour.

The deductible: two different outcomes

This is where the most confusion sits, and the two outcomes are not the same thing.

Shared as a common expense. Under section 158(1) the payment of a deductible on a claim against the strata's insurance is a common expense, contributed through strata fees. Strata fees are set by unit entitlement, so this is the one route where unit entitlement is involved.

Recovered from a responsible owner. Section 158(2) preserves the strata corporation's ability to sue an owner to recover the deductible where that owner is responsible for the loss or damage. This is that owner's liability in full — it is not divided among owners and it has nothing to do with unit entitlement.

Two cautions. Responsibility is not automatic: the Act allows recovery from an owner who is responsible, not from whoever's strata lot the water happened to start in, and whether an owner is responsible usually turns on negligence or on a valid bylaw. And a chargeback is a claim, not a self-executing charge — if the owner disputes it, the strata's route is the Civil Resolution Tribunal or the courts.

Paying a deductible you didn't budget for

Section 158(3) is the provision most councils don't know they have. Despite any other section of the Act, no owner approval is required for a special levy or an expenditure from the contingency reserve fund to cover an insurance deductible the strata corporation must pay to repair or replace damaged property — unless the strata has decided not to repair or replace under section 159. A large water-damage deductible does not have to wait for a general meeting.

That is a narrow exception to the usual rule that a special levy needs a 3/4 vote. It applies to the deductible, not to the rest of the repair bill.

If the insurer denies or reduces the claim

There is no statutory "appeal" of an insurer's decision. What exists is a sequence: ask the insurer to reconsider through its internal complaint or review process and put the reasons in writing; escalate to the General Insurance OmbudService; complain to the BC Financial Services Authority, which regulates insurers in the province; or take legal action. The Civil Resolution Tribunal handles disputes between owners and the strata corporation — it does not decide coverage disputes with an insurer.

Questions councils ask

Can we charge the deductible to the owner whose unit flooded? Only if that owner is responsible. Establish the cause first, check whether a bylaw applies, and document the reasoning before issuing anything.

Do we need a vote to pay the deductible? No, where the deductible is one the strata must pay to repair the damage — section 158(3) removes the approval requirement for a levy or CRF withdrawal in that situation.

Does the strata policy cover an owner's renovation? Generally not. Improvements and non-original fixtures sit on the owner's policy under section 161, which is worth telling owners before they renovate rather than after a loss.

Before the next claim

Know your deductibles and review them at renewal. Keep maintenance records — they are what turns "the strata was negligent" into a defensible file. Tell owners annually what the strata's policy does and does not cover, and what their own policy needs to fill. Tools like SearchStrata can pull the coverage and deductible details out of a policy and past minutes when a claim is moving faster than your filing system.

Councils that keep maintenance records, claim correspondence and deductible decisions in one place — the kind of record-keeping ManageStrata is built around — spend far less time proving what happened when a claim turns into a dispute.

This article is general information about BC strata law, not legal advice; verify against the current Strata Property Act and Regulation or consult a BC strata lawyer or your broker.