Insurance Summary / Strata Insurance Certificate

A strata insurance certificate or insurance summary is a short document produced by the strata corporation's insurer that outlines the key details of the strata's master policy, including the insurer's name, policy number, coverage limits, deductibles, and policy effective dates. In BC, strata corporations are required under the Strata Property Act (SBC 1998, c. 43) to obtain certain types of insurance, and the certificate provides a quick reference so owners, prospective buyers, lenders, and individual unit insurers can understand what the strata's policy covers. It is not a replacement for the full policy wording but serves as a practical summary of the strata's insurance position.

Yes. Under the Strata Property Act (SBC 1998, c. 43) and its Regulation, a strata corporation in British Columbia is required to obtain and maintain property insurance on common property, common assets, and buildings shown on the strata plan, as well as liability insurance. The insurance must be for full replacement value of the insured property, subject to the terms of the policy and any applicable bylaw provisions. The strata insurance certificate is one of the primary ways the strata corporation demonstrates to owners and others that this statutory obligation is being met.

In BC, a buyer purchasing a strata lot is entitled to request strata documents through the Form B Information Certificate process under the Strata Property Act (SBC 1998, c. 43); the strata corporation must provide various documents, and information about the strata's insurance is part of the disclosure package that accompanies or is referenced in Form B. Buyers and their licensees typically review the strata insurance certificate as part of their due diligence during the subject-removal period. Licensees acting for buyers have a duty under the Real Estate Services Act (RSBC 2004, c. 42) and BCFSA standards to assist clients in understanding relevant strata documents, including insurance information.

A buyer reviewing a BC strata insurance certificate should note the policy's effective and expiry dates to confirm the coverage is current, the coverage limits to understand whether full replacement value is maintained as required by the Strata Property Act (SBC 1998, c. 43), and the deductible amounts because large deductibles on the strata's policy can be assigned to individual owners under strata bylaws in the event of a claim. Buyers should also check whether the policy covers bare land stratas differently from building stratas, and whether there are any exclusions or endorsements that could affect their unit. Consulting the strata's bylaws alongside the certificate is important to understand how deductible liability is allocated among owners.

Yes. Under the Strata Property Act (SBC 1998, c. 43) and its Regulation, a strata corporation may, by bylaw, require an owner to pay all or part of the strata's insurance deductible if a claim arises from the owner's action, omission, or negligence, up to limits set in the Regulation. The strata insurance certificate will typically show the deductible amounts for various perils, such as water damage or earthquake, which can be substantial. Individual unit owners are therefore encouraged to carry their own homeowner's or unit-owner insurance (often called a Form Strata or HO-6 equivalent policy) that can cover the strata deductible they may be responsible for.

The strata corporation's master policy, summarised in the strata insurance certificate, covers the building structure, common property, common assets, and liability of the strata corporation as required under the Strata Property Act (SBC 1998, c. 43). An individual owner's own insurance policy covers items the master policy does not, such as the owner's personal contents, improvements made to the unit beyond the original construction (often called 'betterments'), loss of use or additional living expenses, and the owner's potential liability for the strata's deductible. The two policies work together, and reviewing the strata insurance certificate helps an owner identify the gaps their individual policy should address.

Yes. Mortgage lenders financing the purchase of a strata lot in BC routinely require a copy of the strata insurance certificate as part of their underwriting and funding conditions, because the building security for their loan depends on adequate insurance being maintained on the structure. While there is no single BC statute that explicitly compels the strata to provide the certificate directly to a lender, a buyer can obtain strata documents including insurance information through the Form B process under the Strata Property Act (SBC 1998, c. 43) and supply them to their lender. Lenders may also require the certificate to confirm they are noted as an interested party or additional insured on the strata's policy.

Earthquake insurance is not mandatory under the Strata Property Act (SBC 1998, c. 43), so its presence or absence on the strata insurance certificate is a significant due-diligence point, particularly in seismically active areas of BC such as Metro Vancouver and Victoria. If the strata does not carry earthquake coverage, the financial cost of earthquake damage to the building would need to be met through special levies or other strata funds, which could result in substantial assessments to individual owners. Buyers should review the strata insurance certificate alongside the depreciation report and contingency reserve fund balance to assess the strata's overall financial resilience to an uninsured catastrophic event.

Under the Strata Property Act (SBC 1998, c. 43), it is the strata corporation itself — not individual owners — that is responsible for obtaining and maintaining the required insurance, and the strata council acts on behalf of the strata corporation in carrying out this duty. The strata council must ensure the policy is renewed before expiry, that coverage remains at full replacement value as required by the Act and Regulation, and that owners are informed of material changes to coverage. An updated strata insurance certificate should be available to owners and prospective buyers whenever the policy is renewed or materially amended.

Yes. Real estate licensees in BC are governed by the Real Estate Services Act (RSBC 2004, c. 42) and BCFSA standards of conduct, which require licensees to act in the best interests of their clients and to disclose information that is material to a trade. If a licensee representing a buyer fails to draw the buyer's attention to significant issues visible in the strata insurance certificate — such as an upcoming policy expiry, very high deductibles, or an absence of earthquake coverage — that could constitute a failure to meet the professional obligations set out by BCFSA. Licensees should assist clients in obtaining and reviewing the insurance certificate but should direct clients to insurance professionals for detailed coverage advice.