Shopping for a luxury condo in North Vancouver? One of the most important details to understand is strata insurance. It affects your risk, your budget, and how claims are handled if something goes wrong. If you know what the strata policy covers and what you must insure yourself, you can buy with confidence and avoid costly surprises. This guide breaks it down and gives you a clear checklist to use before you write an offer. Let’s dive in.
What strata insurance covers in BC
Strata insurance is the policy the strata corporation buys to protect the building and common property. It is required under the Strata Property Act in British Columbia. This policy is separate from your personal condo insurance, which you still need.
Building and common property
The strata’s property policy usually covers the building and common assets on a broad or all risk basis. Covered perils often include fire, vandalism, storm damage, and water escape, subject to the policy wording. For luxury towers, high-end finishes, complex façades, and specialized amenities increase the insured value and can affect premiums and deductibles.
Liability protection
The strata typically carries liability insurance that protects the corporation, and often council members, if someone is injured or suffers property damage on common property.
Equipment breakdown and crime
Boiler and machinery or equipment breakdown coverage helps with failures of major building systems. Crime or fidelity insurance protects against theft involving those who handle strata funds.
Optional endorsements
Certain risks require separate endorsements or policies. Earthquake is commonly not part of standard building coverage and may be available as a separate policy with a high deductible. Sewer backup and overland flood coverage may also be optional.
What it does not cover
Strata insurance does not replace your personal condo policy. You still need coverage for:
- Contents and personal belongings.
- Upgrades and improvements you or prior owners installed.
- Personal liability.
- Additional living expenses if your suite is unlivable after a covered loss.
- Loss assessment coverage for your share of a strata deductible or a special levy stemming from an insured loss.
North Vancouver risk factors to know
Rain and water exposure
The North Shore’s high rainfall and coastal setting increase the risk of water ingress, envelope wear, and corrosion compared with interior regions. Insurers pay close attention to building maintenance and claims history, especially for water.
Seismic and coastal considerations
Seismic risk is a long-term exposure in Metro Vancouver. Earthquake coverage is often separate and can carry a large deductible. Coastal flooding and storm surge are broader concerns and may require specific endorsements.
Complex luxury buildings
Extensive glazing, intricate building envelopes, spa and wellness spaces, concierge areas, and high-value mechanical systems raise replacement costs. This can result in higher premiums, higher deductibles, or sub-limits for certain specialty components.
Deductibles and who pays
Strata policies include deductibles that vary by peril. Water, fire, and earthquake deductibles are often different, and earthquake deductibles can be significant. Who ultimately pays a deductible depends on the policy wording and your strata’s bylaws.
How allocation typically works
Bylaws and the Strata Property Act framework guide whether an owner is responsible for a deductible when damage starts in their unit or was caused by negligence. If damage is not caused by an owner, the strata may pay from its funds, but rules vary. Always review the bylaws and confirm current practice with the strata manager.
Common claim examples
- Water escape from a neighboring unit. The building policy may respond. Depending on cause and bylaws, the responsible owner may be charged the deductible or repair costs.
- Major fire. The building policy generally covers reconstruction to the insured standard. Your own policy covers your contents and improvements.
- Earthquake. Coverage may be excluded or carry a high deductible. If excluded, repairs are typically funded by the reserve and special levies.
- Long-term leaks or mould. These are often excluded as maintenance or deterioration issues, leading to out-of-pocket costs or levies.
Buyer due diligence checklist
Before you remove subjects, request and review these items, typically obtained through the seller’s lawyer or via a Form B information request:
- Form B information certificate. Confirm insurer, policy number, coverage types and limits, all deductibles, whether earthquake is included, recent and outstanding claims, and any proposed levies related to insurance repairs.
- Certificate of insurance and policy wording. Ask for the actual wording, not just a summary.
- Strata bylaws and rules. Focus on responsibility for repairs inside a unit and how deductibles or uninsured losses are allocated.
- Recent council and AGM minutes. Look for outstanding claims, funding shortfalls, remediation plans, or litigation.
- Depreciation report and contingency reserve fund balance. Assess preparedness for large repairs and the likelihood of future levies.
- Claims history. Note frequency and severity, especially water ingress and envelope issues.
- Letters on envelope remediation. Confirm any planned work and timing.
Key questions to verify:
- Is earthquake coverage included? If yes, what is the deductible and how would an assessment be allocated?
- Are there exclusions or unusually low limits for amenities, underground parking, or specialty systems?
- Who pays deductibles in different scenarios under current bylaws and practice?
- Are there pending claims likely to trigger a special levy?
Seller preparation checklist
If you are listing a luxury condo, help buyers feel confident by preparing:
- The current certificate of insurance and Form B.
- A summary of recent claims, with resolutions if available.
- Bylaws highlighting deductible allocation and in-suite repair responsibilities.
- The latest depreciation report and reserve fund balance.
- Council and AGM minutes for the past 12 to 24 months.
- Any engineering or envelope reports and planned remediation timelines.
Providing a clean, complete package strengthens your position and reduces delays.
Costs, premiums, and levies
Premiums and deductibles are market driven and change over time. Luxury buildings often have higher replacement costs and complex amenities, which can push premiums and deductibles higher. If a large claim is not insured or if coverage is denied, the strata may levy owners to fund repairs or rebuild. Review the reserve fund, recent levies, and pending projects so you can budget with confidence.
Your personal condo policy
Pair the strata’s policy with robust owner coverage. Look for contents, improvements and betterments, personal liability, additional living expenses, and loss assessment coverage. If you rent the unit, consider loss of rental income coverage.
Who can help
- Strata manager. Your first stop for the Form B, insurance certificate, minutes, and claims history.
- Insurance broker with condo expertise. To explain policy wording, deductibles, and owner-level coverage needs.
- Real estate lawyer or notary. To review Form B responses, bylaws, and levy implications before you commit.
- Building consultant or engineer. To interpret the depreciation report and advise on envelope and mechanical issues.
Buying or selling a luxury condo should feel seamless and informed. If you want a discreet, white-glove approach to due diligence and negotiation on the North Shore, connect with Amir Miri to Request a Private Consultation.
FAQs
What is strata insurance for North Vancouver condos?
- It is the policy the strata corporation buys to cover the building, common property, and liability, separate from your personal condo insurance.
Does strata insurance cover my renovations and furniture?
- No. You need your own policy for contents and improvements, plus loss assessment coverage for deductibles tied to insured claims.
How do deductibles work in a strata claim?
- Deductibles vary by peril and can be large. Who pays depends on bylaws, policy wording, and the cause of damage, so always confirm in writing.
Is earthquake insurance usually included in Metro Vancouver?
- Often it is excluded or offered as a separate policy with a high deductible. Verify inclusion, limits, and how any assessment would be allocated.
What should I review before buying a luxury condo?
- Form B, insurance certificate and wording, bylaws on deductibles, recent minutes, depreciation report, reserve balance, and claims history.
Could I face a special levy due to insurance issues?
- Yes. Uninsured repairs, high deductibles, or denied claims can lead to levies. Reviewing reserves, claims, and maintenance plans helps you prepare.