Typically, Strata Corporation insurance policies “insure against all risks of direct physical loss or damage
to the property insured”. This is subject to exclusions and deductibles.
The insured property is the building as handed over by the developer once construction has completed, and includes the building, permanently installed original fittings and fixtures, mechanical equipment, fire system and common assets.
What Doesn’t the Strata Insurance Cover?
Contents: The Strata Corporation’s Insurance does not cover your personal belongings in the
event of a loss, regardless of the cause. All Owners and Tenants must therefore have their own
Personal Insurance Policy for their personal belongings (“Contents”) such as furniture, clothing,
electronics, etc. Further, in the event there is damage to your unit, your contents may need to be
removed during the repair. The Strata Corporation’s Insurance does not cover the move out or
storage costs – this is covered under the Contents provision of your Personal Insurance Policy.
Additional Living Expenses:
You may need alternate accommodation during repairs to your unit,
such as a hotel or rental unit. In the event of a significant loss, your unit could be uninhabitable
for one year or greater. “Additional Living Expenses” are included in a Personal Insurance Policy
to cover these out of pocket expenses.
Unit Upgrades:
The Strata Corporation’s Insurance does not cover unit upgrades, whether made
by yourself or a previous unit owner. It is therefore imperative you insure any unit upgrades under your Personal Insurance Policy (sometimes known as “Unit Improvements and Betterments”).
Examples of upgrades could include: hardwood or laminate flooring and upgraded appliances.
Loss Assessment:
In the event of a Strata Corporation claim resulting from your unit, you will likely
be assessed the Strata Corporation’s Deductible. Please review the Notice of Annual General Meeting to obtain a copy of the Strata Corporation’s insurance policy (“Summary of Coverages”). You must ensure your Personal Insurance Policy will cover an amount equal to the Strata Corporation’s Water Damage Deductible. This is extremely important as a Strata’s Water Damage Deductible is often $10,000.00 and greater.
Unit Additional Protection:
One component of this extension under a Personal Insurance Policy
is to provide coverage in the event the Strata Corporation’s Insurance is not effective. This is very
important as there could be damage to your unit which does not exceed the strata corporation’s
policy deductible, and therefore does not trigger the strata corporation’s policy. You'd be best to ensure
your Personal Insurance Policy includes coverage for in-suite damages that are under the Strata
Corporation’s Deductible for which you are responsible.
Earthquake:
Given the exposure to the lower mainland it is generally recommended that you ensure your Personal Insurance Policy includes coverage for the peril of Earthquake. Some Insurers may offer a specified
limit for Earthquake Deductible Coverage, for your unit’s assessed portion of the Strata Corporation’s Earthquake Deductible.
Other-Repairs and Maintenance Within A Strata Lot:
Owners must make sure that they keep everything within their strata lot in good working order and in good condition to prevent a water escape etc. This includes but is not restricted to dishwashers, washers, refrigerators with ice makers, garburators, toilets, sinks, bathtubs, water filters, hot water tanks and any copper pipes or taps and fixtures located within the strata lot, or from any alterations done by the Owner or previous owner to the strata lot etc. Owners should make sure cold and hot water shut off valves work properly and know the location of the valves, and how to operate them. Owners may wish to consider employing a professional contractor to carry out regular inspections and maintenance of these in suite items.
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