Condo owners and liability for strata losses

Condo owners could be liable to pay for their strata’s insurance water damage deductible, even if they’re not responsible for damages.

Strata corporations can legally sue an owner to recover the deductible if the owner is responsible for a loss or damage, even if it is beyond the unit owner’s control.  For example, if a pipe bursts from within the walls or your unit or a faulty washing machine connection causes a water leak, the owner could be held accountable.  If an owner’s condo insurance policy does not cover the required limit of coverage they may have to pay out of pocket, and strata building policy deductibles can range from $2,500 to $150,000.

Condominium insurance usually provides limited coverage for strata deductibles, but you can often increase coverage for a small additional premium.

A condo policy covers many other aspects, including:

Unit improvements and betterments

Improvements you have done to your unit are not usually covered under the strata’s insurance policy.  Your condo insurance package would cover the difference for you.  Some examples of improvements include upgrading your carpet to laminate flooring or updating your bathroom fixtures.

Worldwide liability coverage

Your policy can cover you in the event of bodily injury or property damage you cause to a third party.

Replacement cost of personal belongings

This can include anything from high-value jewelry and watches to bicycles and equipment.

Additional living expenses

Your condo policy will cover hotel and/or dining costs while insured repairs are being completed.

Call us today to find out how to protect your investment for as little as $250 per year.

Are you interested in receiving a complimentary quote or more information about condo insurance?  Please contact Habitat Insurance Agencies at tel 604-438-5241 or email [email protected].  One of our professional brokers will be happy to assist you. 

Disclaimer:  This article is designed to provide information for personal use only.  Please consult your professional insurance broker for professional advice. Habitat Insurance Agencies Ltd is not responsible for any legal disputes of this matter.