Strata Water Deductible Insurance
Every home is unique. So is the insurance that goes with it.
Excess Strata Water Deductible Coverage
for Condo Unit Owners
In recent months, a large number of BC Strata Corporations have seen their water damage deductibles increase significantly. In many cases, these new deductibles now far exceed the limits offered on condo unit owners’ policies. This can leave strata owners financially vulnerable in case of an unexpected loss. With InsureBC's Strata Water Deductible Insurance, you can rest assured that you will be protected from the financial burden of high deductibles
Has Your Strata’s Water Deductible Increased Recently?
If your Strata’s Water Deductible is above and beyond the limit offered under your Condo Policy limit, you may be responsible for the difference between the two. This example illustrates the amount that you could be on the hook for if you do not have the right coverage in place.
How Does Strata Water Deductible Buy Back Coverage Work?
While a standard condo insurance policy includes coverage for your Strata’s deductible assessment, it is typically capped at $100,000, depending on your insurance carrier. In many cases, these limits are not high enough to cover the entire Strata water deductible assessment. Therefore, if your Strata has a higher water deductible than what is covered on your primary condo policy, you could be responsible for the gap.
To combat these increases, InsureBC has developed a policy to close the gap between the coverage offered on a standard condo policy and the amount required by the Strata Corporation. Our policy addresses the exposure after both the strata corporation has used their policy and the condo unit owner has used theirs, so you won’t be personally responsible to pay the difference.
.svg)
FAQ
Policy Details and Eligibility
- Coverage Limits: Up to $500,000 with a minimum $25,000 deductible.
- Eligibility: Must have copies of both Strata and Condo primary policies. Eligible units include those occupied by owners, seasonal condos, or units rented annually to a single family. Coverage is restricted to BC residents.
- Exclusions: No coverage for short-term rentals, earthquake, flood, fire, rental income, or Additional Living Expenses (ALE).
- Loss History: Requires a detailed 5-year loss history with no losses in the last 3 years. Units with prior water damage claims within the last 5 years may need underwriter approval.
For more information or to submit applications, please contact waterdeductible@insurebc.ca.
Are vacant units eligible?
No, vacant units are not eligible for coverage. We advise clients to shut off their water and inspect their units frequently for any damage.
What happens if the Strata deductible increases during the policy term?
We provide endorsements to cover any increased deductible required during the policy term, regardless of changes in the Strata or condominium policy.
Is the policy transferable?
Yes, the policy can be transferred if the new location meets our qualifying criteria.
Can first-time buyers qualify for this policy?
Yes, as long as they have had no losses in the last three years and the unit they are purchasing has been loss-free for five years.
Is there a policy fee?
Yes, there is a $25 policy fee, which is included in the quoting template.
What are the commission details?
We offer a 15% commission. There is also a minimum retained or fully earned fee of $350 if a claim has been paid. If the premium is less than $350, it is fully retained.
How is the pricing determined?
Pricing varies with coverage needs, ranging from $50,000 to $250,000. Exact quotes can be generated through our app, based on the specifics of your scenario.
What if the primary condo policy does not cover the water damage deductible?
The primary condominium policy must include at least $25,000 in deductible assessment coverage and must respond first. Our policy acts as the final payer and only provides coverage when the limits of the underlying policies are exhausted.
Does the coverage include Strata Sewer Back-Up Deductible?
Yes, the policy covers sewer back-up deductibles but does not cover flood damage.
Who underwrites this program?
This program is underwritten by Lloyd’s and managed by InsureBC. For now, all inquiries should be directed to waterdeductible@insurebc.ca.
Who can purchase this policy?
This policy is available for condo units held in a holding company's name and rented out annually without subletting. It does not permit short-term rentals like Airbnb.
What is the Strata Water Deductible Buy-Back Product?
This product is designed to bridge the gap between the coverage offered by a standard Condominium policy and the limits required by the Strata Corporation. It provides additional coverage when both the building's policy and the personal Condo policy have reached their limits regarding Water Deductible Assessment exposure.
Looking to File a Claim?
Our dedicated claims department is committed to making the claims process as smooth and stress-free as possible. Whether you need to file a claim for your home, vehicle, or business, we have the expertise to guide you through the process.
