BC Strata Insurance: What Owners and Realtors Need to Know After Bill 20 (2026)
Between 2019 and 2022, BC's strata insurance market collapsed into a full-blown crisis. Some strata corporations watched their premiums triple and their deductibles jump from $25,000 to $500,000 or more — literally overnight. The BC government responded with Bill 20 in 2020, which reshaped how strata insurance works, how deductibles can be charged to individual owners, and what must be disclosed in strata documents. For realtors advising clients on strata purchases, understanding this framework is not optional.
Two Insurance Layers in Strata Properties
Strata properties have two distinct insurance layers. Failing to understand both — or assuming one covers what the other does not — is one of the most expensive mistakes a strata owner can make.
Layer 1: Strata Corporation Insurance
Mandatory under the Strata Property Act. The strata council purchases this on behalf of all owners. Paid through strata fees. Covers:
- ›Common property (hallways, elevators, parking, amenities)
- ›Building structure (exterior walls, roof, foundation)
- ›Original fixtures in all strata lots (as built)
- ›Common area third-party liability ($5M+ typically required)
- ›Loss of rental income for common areas
Layer 2: Owner's Personal Insurance
Not mandatory by law, but strongly recommended (some strata bylaws require it). Covers what the strata policy does not:
- ›Personal contents and belongings
- ›Unit improvements / betterments beyond original fixtures
- ›Strata deductible liability (if you cause a claim)
- ›Loss assessments (if strata bills owners for uninsured losses)
- ›Personal liability within the unit
- ›Additional living expenses if unit becomes uninhabitable
What Strata Corporation Insurance Covers — and the Critical Exclusions
| Scenario | Strata Policy Covers? | Owner Policy Needed? | Key Consideration |
|---|---|---|---|
| Fire in your unit damages the building | Yes — building structure | Yes — for deductible + improvements | Deductible may be charged to owner if negligent |
| Pipe burst floods unit below | Yes — building and affected units (original fixtures) | Yes — for strata deductible + your contents | Deductible can be $50,000–$500,000+ |
| Theft of your laptop and jewellery | No | Yes — contents coverage | Strata never covers personal belongings |
| Hardwood floors you installed are damaged | No — betterment | Yes — improvements coverage | Original floors: strata covers. Your upgrade: owner covers. |
| Earthquake damages building | Only if earthquake endorsement purchased | Loss assessment coverage critical | Many BC stratas lack earthquake coverage due to cost |
| Visitor trips in your unit and sues you | No — personal liability | Yes — personal liability coverage | Strata covers common area liability, not in-unit |
| Strata claim exceeds policy limit | No — insurer pays limit only | Yes — loss assessment coverage | Shortfall allocated to all owners as 'special levy' |
Bill 20 Changes — What Changed and Why
Between 2019 and 2022, BC's strata insurance market underwent a dramatic deterioration. Insurers faced large water damage claims, aging building inventory, and limited competition in the strata insurance market. The result was extreme premium increases and massive deductible hikes that transferred enormous risk back to individual owners and strata corporations.
The Crisis That Triggered Bill 20
Deductible Cap on Owners
Before Bill 20: a strata bylaw could pass the full deductible to whichever owner caused a claim — even if not negligent. After Bill 20: the deductible charged to an owner is capped at $50,000 unless the owner is found to be negligent or responsible under the SPA. If negligent, the full deductible can still be charged.
Mandatory Annual Insurance Certificate
Strata corporations must obtain an insurance certificate annually and make it available to owners and interested parties. The certificate must show coverage type, amount, deductibles, and premium. This is now routinely included in strata documents provided during the subject period.
Insurance Renewal Disclosure in Minutes
The strata council must record insurance renewal information in meeting minutes — including coverage amounts, premium changes, and any material changes to coverage. Owners are entitled to this information at every renewal.
2 Weeks Notice Before Cancellation
Insurers must provide 2 weeks' written notice before cancelling a strata corporation's policy. Previously, cancellation could be immediate or very short-notice, leaving strata corporations uninsured with no time to find alternative coverage.
Deductible Bylaw Restrictions
Any strata bylaw that charges a deductible to an owner must follow the Bill 20 framework — it cannot exceed $50,000 unless the bylaw specifically addresses negligence. Existing bylaws that exceeded this cap had to be revised.
Deductibles — The Biggest Financial Risk for Strata Owners
The strata deductible is the amount the strata corporation must pay before the insurance policy pays out. This amount has been the source of the most significant financial exposure for BC strata owners.
How a Strata Deductible Claim Works
Water leak in your bathroom damages the unit below. Total damage: $85,000.
Strata's insurance deductible: $50,000. Insurer pays: $35,000.
Strata must pay the $50,000 deductible.
Strata's bylaw says the owner who caused the damage is responsible for the deductible.
If you are found negligent: you owe the strata $50,000. Your personal strata insurance covers this.
If you are NOT found negligent (e.g. pipe was old and defective): capped at $50,000 under Bill 20 but can still be assessed.
Current Deductible Landscape in BC (2025–2026)
After the crisis years, deductibles have partially normalized but remain elevated compared to pre-2019 levels:
| Building Type | Pre-2019 Typical | Crisis Peak (2021) | 2025–2026 Typical |
|---|---|---|---|
| High-rise, newer (post-2010) | $10,000 | $100,000–$250,000 | $25,000–$75,000 |
| High-rise, older (pre-2000) | $25,000 | $250,000–$500,000 | $50,000–$200,000 |
| Wood-frame lowrise | $5,000–$10,000 | $50,000–$150,000 | $10,000–$50,000 |
| Townhouse complex | $5,000 | $25,000–$100,000 | $10,000–$25,000 |
Personal Strata Owner Insurance — What You Need
Strata owner insurance (often called "condo insurance") is the owner's personal policy that fills the gaps left by the strata corporation's building policy. Given current deductible levels, this coverage has become essential rather than optional.
Contents Coverage
Furniture, electronics, clothing, artwork, appliances you own
Why needed: Strata policy covers building only — nothing inside your unit belongs to the strata's insurer
Typical limit: $30,000–$100,000+
Improvements & Betterments
Upgrades you made beyond the original construction (flooring, cabinetry, fixtures)
Why needed: The strata insures the unit as originally built. Your reno is your responsibility.
Typical limit: Based on your renovation costs
Deductible Liability
Covers the strata deductible if you cause an insured claim
Why needed: Without this, a burst pipe could leave you owing $50,000–$100,000+
Typical limit: $50,000–$100,000 minimum
Loss Assessment
Covers your share of a loss that exceeds the strata's insurance
Why needed: If a claim exceeds coverage, all owners share the shortfall — this is your protection
Typical limit: $50,000–$100,000
Additional Living Expenses
Hotel and food costs if your unit becomes uninhabitable after a covered loss
Why needed: Restoration after a major flood or fire can take months
Typical limit: $50,000–$100,000
Personal Liability
Covers third-party injury claims in your unit
Why needed: Guest slips in your unit and sues you — strata's liability doesn't cover this
Typical limit: $1M–$2M
Cost of Personal Strata Insurance in BC (2025–2026)
A standard personal strata insurance policy in Metro Vancouver typically costs $80–$200/month for a condo unit, depending on location, building age, coverage amounts, and credit history. Older buildings, higher-crime areas, and higher coverage limits increase premiums. Discounts are available for bundling with auto insurance, claim-free history, and security features in the building.
Insurance Information in Form B and Strata Documents
Since Bill 20, insurance information has become a more prominent part of strata document disclosure. Buyers reviewing strata documents should look at insurance in multiple places.
Form B — Information Certificate
Form B must disclose: the strata's current insurance information (insurer name, coverage type, amount, and deductible for each type of coverage). This is the buyer's first look at insurance details. Any deductible above $50,000 should trigger a deeper review of the strata's insurance documents and meeting minutes.
Insurance Certificate
The actual insurance certificate provides more detail than Form B — including all policy endorsements, exclusions, and the replacement cost valuation. If the replacement cost valuation appears outdated or significantly below construction costs per square foot (Metro Vancouver: $350–$500+/sq ft for concrete construction), the building may be underinsured.
Strata Meeting Minutes
Insurance discussions in meeting minutes often reveal more than the certificate. Look for: significant premium increases year-over-year, discussion of deductible changes, any claims in the past 3 years and their outcome, difficulty renewing coverage, or any broker recommendation to change insurers. These are all material to a purchasing decision.
Strata Bylaws
Review bylaws for the deductible recovery provision — specifically, does the bylaw allow the strata to charge the deductible to an individual owner, under what circumstances, and up to what amount? A bylaw that attempts to charge more than $50,000 to a non-negligent owner may be invalid under Bill 20, but it creates uncertainty and potential disputes.
Warning Signs of an Uninsurable or High-Risk Strata
Not all strata buildings are equally insurable. Some buildings face ongoing challenges that result in limited insurer interest, sky-high premiums, or coverage gaps that significantly increase owner risk.
Deductible above $100,000
CriticalIndicates the building has a poor claims history or significant risk factors. Owners face enormous personal exposure if they cause a claim.
Multiple claims in past 3 years
HighFrequent claims drive up premiums and reduce insurer interest. Pattern of claims indicates building condition issues.
Premium increased >50% at last renewal
HighSignals insurer concern. May indicate difficulty renewing — some buildings cannot find coverage at all.
Building on insurance exclusion list
CriticalSome buildings are outright excluded by multiple insurers due to construction type, age, or loss history.
No earthquake endorsement in seismic zone
HighBC is in an active seismic zone. Buildings without earthquake coverage leave owners fully exposed to loss.
Replacement cost valuation outdated
MediumIf insured replacement value is significantly below current construction costs, a total loss would not fully rebuild the building.
Insurance broker changed in past 2 years
MediumMultiple broker changes may indicate difficulty placing coverage or disputes with brokers.
Polybutylene or Kitec plumbing
HighThese plumbing materials are known failure risks. Many insurers exclude or heavily surcharge buildings with known defective plumbing.
Realtor Advisory Guide — Strata Insurance and Your Clients
For Buyer's Agents — The Insurance Review During Subject Period
Strata insurance review should be a standard part of every strata purchase's subject period — not an afterthought.
- 1.Obtain Form B and read the insurance deductible section carefully
- 2.Request the full insurance certificate from the strata manager
- 3.Review 3 years of meeting minutes for insurance-related discussions
- 4.Check whether the strata has a deductible recovery bylaw — and the cap amount
- 5.Recommend the buyer speak with a personal insurance broker before removing subjects
- 6.If deductibles exceed $50,000, ensure buyer understands the financial exposure
- 7.If building shows crisis warning signs, recommend a building condition assessment before removal of financing subject
Explaining Insurance Risk to Buyer Clients
Script
"Before you remove subjects, I want to make sure you understand the insurance picture on this building. The strata's deductible is $75,000 — which means if you have a water leak that damages the unit below, you could be personally on the hook for up to $75,000. The good news is that personal strata insurance covers this — it's about $120/month. I'd recommend calling a broker today to get a quote before you remove subjects, just so there are no surprises."
For Listing Agents — What to Prepare
- ›Proactively obtain the current insurance certificate from the strata manager before listing
- ›If deductibles are high, be ready to explain Bill 20's $50,000 cap to buyers' agents
- ›If the building has had recent claims, understand the context and be prepared to discuss
- ›Include the insurance certificate as part of the listing document package — reduces friction during subject period
- ›Disclose any known insurance challenges as a material fact — failure to disclose is a professional conduct risk
Frequently Asked Questions
What did Bill 20 change about strata insurance in BC?›
What does strata corporation insurance cover in BC?›
Do I need personal insurance if my strata has building insurance?›
What should buyers check about strata insurance before purchasing?›
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