If you own a condo, townhouse, or strata unit in Metro Vancouver, strata insurance is one of the most important — and most misunderstood — topics you need to get right in 2026.
Deductibles that once sat at $5,000 or $10,000 have climbed to $50,000, $100,000, or more in many BC strata corporations. And if damage originates in your unit, you could be on the hook for the full amount.
This is Part 1 of a two-part guide. Here, we cover how strata insurance works, what the 2026 market looks like, and where your personal exposure lies. Part 2 covers what landlords renting out strata units specifically need to do, and what strata councils should have in place right now.
How Strata Insurance Works in British Columbia
Under BC's Strata Property Act, every strata corporation is legally required to hold property and liability insurance covering:
- The building structure: roof, exterior walls, and foundation
- Common areas such as hallways, lobbies, elevators, and amenity spaces
- Original fixtures installed by the developer within each unit, including flooring, cabinetry, and fixtures as they existed when the building was first built
This building-level policy is funded through monthly strata fees paid by all owners. It is not your personal coverage — it is the building's coverage.
What it does not cover is equally important:
- Personal belongings
- Unit upgrades and improvements
- Personal liability
- The strata corporation's deductible when a claim arises
Understanding these distinctions is essential for condo owners, investors, and landlords who own rental properties within strata buildings. Many landlords using residential property management services are surprised to learn how much personal exposure can exist beyond the building's policy.
What Is a Strata Deductible and Why Does It Matter?
Every insurance policy has a deductible: the amount that must be paid before coverage kicks in. For strata corporations in BC, that deductible is set at the building level and can be substantial. Under the Strata Property Act, a strata corporation can charge the full deductible back to a unit owner if the loss or damage originated in their unit, even if the owner was not negligent.
Common examples include:
- Burst washing machine hoses
- Dishwasher leaks
- Bathroom overflows
- Refrigerator water line failures
- Plumbing leaks inside the unit
According to recent BCFSA data, over 60% of strata corporations now face insurance deductibles exceeding $50,000, compared to just 15% in 2020. Some water damage deductibles in Metro Vancouver now exceed $250,000. If your condo insurance policy only covers deductible assessments up to $25,000 and your building's water damage deductible is $100,000, you could face a $75,000 out-of-pocket exposure.
Common Water Damage Claims in BC Strata Buildings
Water damage remains the leading cause of strata insurance claims throughout British Columbia.
Many costly claims begin as small maintenance issues that go unnoticed, including:
- Leaking dishwasher supply lines
- Washing machine hose failures
- Slow plumbing leaks
- Overflowing bathtubs or sinks
- Failed refrigerator water connections
When multiple units are affected, the resulting deductible assessment can be significant. This is one reason many landlords rely on Ongoing Property Management Services and regular inspections to identify maintenance concerns before they become major insurance claims. Preventative maintenance often costs far less than a large deductible assessment after a water damage event.
The 2026 Strata Insurance Market: Where Things Stand
The BC strata insurance market is in a better place heading into 2026 than it was two or three years ago.
Insurers are posting stronger results, competition for strata business has improved, and many strata corporations have seen premium reductions compared to previous years.
This is a meaningful improvement from the insurance challenges experienced between 2020 and 2023, when many strata corporations saw premium increases ranging from 40% to 250% during a single renewal cycle.
However, lower premiums do not mean lower deductibles. The structural shift toward high water-damage deductibles remains firmly in place. Water damage continues to be the most common and costly source of strata insurance claims in British Columbia. As a result, insurers continue transferring more risk to owners and strata corporations through higher deductibles.
Construction costs also remain elevated, meaning strata corporations that fail to keep insurance appraisals current may face underinsurance issues and co-insurance penalties.
What Your Personal Condo Insurance Should Cover
Understanding the difference between strata corporation coverage and personal condo insurance is critical.
The strata corporation's insurance generally covers:
- The building structure
- Common areas
- Original developer-installed fixtures
- Common property liability
Your personal condo insurance should cover:
- Furniture and personal belongings
- Unit improvements and renovations
- Personal liability
- Additional living expenses
- Strata deductible assessments
Many condo owners are surprised to discover their deductible assessment coverage is far lower than their building's actual deductible. Review your policy and compare your deductible assessment coverage limit against your strata corporation's current deductible schedule.
How to Protect Yourself From Large Strata Deductibles
There are several practical steps owners can take to reduce their financial exposure:
- Review your strata corporation's deductible schedule annually
- Verify your condo insurance coverage limits
- Increase deductible assessment coverage where necessary
- Address plumbing and appliance issues immediately
- Perform regular preventative maintenance
- Complete routine inspections if the unit is rented
For rental property owners, proactive maintenance is especially important. Many investors work with Residential Management Services to help ensure maintenance issues are identified and addressed before they escalate into expensive insurance claims.
Why Rental Property Owners Face Additional Risk
If you own a strata unit and rent it out, your exposure is even greater. In Part 2 of this guide, Strata Insurance in BC: What Landlords and Strata Councils Must Do in 2026, we explain the specific insurance risks facing landlords, what deductible protection you should carry, and the steps strata councils should be taking to reduce future claims. Unlike owner-occupied units, rental properties can develop maintenance issues that go unnoticed between tenant visits. A small leak under a sink or behind an appliance can continue for weeks before being discovered, potentially leading to costly repairs and deductible assessments.
Professional Rental Property Management Services help reduce these risks through:
- Routine inspections
- Preventative maintenance coordination
- Tenant communication
- Emergency response
- Documentation and record keeping
Many investors rely on Port Moody Property Management, Coquitlam Property Management, Burnaby Property Management, and New Westminster Property Management professionals to help protect their properties and reduce insurance-related risks.
Know Your Exposure Before a Claim Happens
Strata insurance in BC has fundamentally changed over the last several years. The gap between what the building policy covers and what an individual owner may owe in a deductible assessment is much larger than many owners realize.
The first step is simple:
- Find out your building's deductible amounts
- Review your personal condo insurance
- Identify any coverage gaps
- Close those gaps before a claim occurs
If you own a strata unit and rent it out, regular inspections and preventative maintenance become even more important. Our Ongoing Property Management Services include regular property inspections designed to identify issues before they become insurance events.
At Axford Property Management, we work with landlords and investors throughout Metro Vancouver, including Port Moody, Coquitlam, Burnaby, and New Westminster, helping protect rental properties through proactive management and risk reduction.
Frequently Asked Questions About Strata Insurance in BC
Can the strata charge me the full deductible even if I was not negligent?
Yes. Under BC's Strata Property Act, a strata corporation can recover its insurance deductible from an owner if the damage originated in their unit. Negligence is not required.
What is the difference between strata insurance and condo insurance?
The strata building policy covers the structure, common areas, and original developer-installed fixtures. Personal condo insurance covers your belongings, upgrades, liability, and deductible assessments.
Are strata insurance premiums going down in 2026?
Premium conditions have improved compared to previous years. However, deductible exposure remains high throughout British Columbia.
How often should a strata corporation update its insurance appraisal?
Best practice is every three years at minimum, with annual reviews of coverage limits and replacement costs.
How much strata deductible coverage should condo owners carry?
Owners should carry deductible assessment coverage equal to or greater than their building's highest deductible. Many Metro Vancouver buildings now have water damage deductibles ranging from $50,000 to $250,000.