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  • The Strata Corporation's Insurance Coverage

    Author: Nancy Wells Date: June 1, 2017

    To ensure that you as a condo unit owner have adequate insurance coverage, you will first need to understand the basics between coverage offered by the strata corporation's insurance policy and an individual owner's insurance policy.

    Typically the strata corporation's insurance policy covers:

    1.The buildings

    2.Common property

    3.The "original" fixtures, floors, electrical etc.

    4.Third party liability claims brought against the strata corporation for bodily injury and property damage

    Typically, a condo owner's insurance policy covers:

    1.Personal property

    2.Improvements& Betterments made by the unit owner

    2.Extra living expense in the event of an insured loss and the unit is uninhabitable

    3.Personal liability for third party bodily injury & property damage claims for which you may be personally held legally liable.

    I hear it often from owners, "the strata have insurance coverage, why do I need coverage for my unit?" I hate to say this, but it is common sense really, if we think about who owns what, or who may be responsible puts it in perspective.

    For example: The unit owner does not own the buildings, walkways, hallways or common property, the Strata Corporation is so therefore they must insure it. The owner is not held personally liable for the bodily injury or property damage on common property,  the strata corporation is, so they must insure it.


    The strata corporation does not own the unit owner's personal property such as furniture, new fixtures, etc. The strata corporation is not legally liable for claims brought against an individual owner, therefore, an owner must insure themselves. Is this starting to make sense?


    Ensuring you have adequate coverage, you need to assess the value of your Personal Property as well as the  Improvements made by you and the limit of personal liability you require. Usually your condo unit owner's insurance policy will also cover you for "shared loss", unit owner may"share" in common property you want to ensure that you have loss assessment coverage. Loss assessment coverage pays your share to a stated amount for major losses on common property that your strata corporation may be under insured for. Also, you want to ensure that you have  strata deductible assessment coverage, this coverage will increase your deductible in the even that each unit owner may be responsible for a portion of the deductible should for example a large water claim be made against the strata corporation's insurance policy or the unit owner may be required to pay the entire deductible if the loss is caused by their actions.

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Author : Nancy Wells
Nancy Wells is the President & CEO of NW Insurance Brokers Ltd.