Insurance for Strata Common Property vs Owner Units

If you can answer one question correctly (does the strata's policy cover this, or mine?) you'll handle every BC strata insurance moment for the rest of your time as an owner. The demarcation between common property and unit insurance is set out in Strata Property Act s. 149 and a small body of case law, and once you understand the principle the answer is usually obvious. We've explained this hundreds of times in council meetings, AGM Q&A, and owner phone calls across the Sea to Sky since 2011. This post lays out the demarcation cleanly, walks through the grey zones (windows, patios, original-finish upgrades), and gives you a checklist you can keep next to your insurance file.

The principle: drywall out, drywall in

The shortest correct answer to who insures what is: the strata corporation insures the building from the original drywall out, and the owner insures everything from the drywall in. That includes everything inside and outside the drywall plane:

• The strata covers the exterior, the roof, the envelope, common hallways, elevators, mechanical rooms, the structural framing, the wiring and plumbing that runs through walls, and the original drywall surface itself plus the original finishes the developer installed.
• The owner covers contents, anything attached to the drywall (paint, wallpaper, art), any improvement beyond original (renovated kitchen, upgraded flooring, custom built-ins), personal liability for what happens in the unit, additional living expenses if displaced, and the strata deductible if charged back under s. 158(2)(d).

This is sometimes called "bare walls" coverage on the strata side and "improvements and betterments" coverage on the owner side. The two are designed to meet at the drywall plane with no gap and minimal overlap.

What the strata corporation insures

The strata's policy, mandated under SPA s. 149, must cover:

• The common property: hallways, elevators, lobby, parkade, mechanical rooms, roof, exterior cladding and windows, common landscaping
• The common assets: boilers, generators, common-area furniture, snow removal equipment
• The strata lots (units) as originally constructed, including original drywall, original kitchen cabinets, original countertops, original flooring, original bathroom fixtures
• Loss of rents or assessments arising from a covered claim
• Liability for the strata corporation itself

Limits are required to be full replacement value of the buildings as if rebuilt new (subject to building code at the time of rebuild). The deductible is set by the strata each renewal and is paid out of contingency or recovered from the at-fault owner.

What's not on the strata policy: contents of any unit, anything an owner installed after possession, owner personal liability, additional living expenses for displaced owners. Those are owner side.

What the owner insures

The owner's condo policy fills the gap on the inside of the drywall. The full demarcation:

• Contents. Furniture, electronics, clothing, kitchenware. Anything movable that isn't a fixture.
• Improvements and betterments. Anything beyond the original developer finish. New flooring, renovated kitchens, custom millwork, upgraded fixtures, added lighting.
• Personal liability. Damage you cause to others or their property; injuries on your premises.
• Additional living expenses (ALE). Hotel and meals if you can't live in the unit during repairs.
• Loss assessment. Your share of strata special levies and deductible chargebacks.
• Deductible buyback. The endorsement that covers your share of the strata deductible specifically when you are responsible.

Most BC owners under-buy improvements/betterments, loss assessment, and deductible buyback. For the full owner-side analysis, see our owner condo insurance guide.

The grey zone: windows, patios, balconies

Two of the most-asked questions in BC strata insurance:

Who insures the windows? Almost always the strata. Windows are part of the building envelope, even though they only serve one unit. The Strata Property Act treats them as common property under s. 1 in most BC stratas unless the strata plan says otherwise. The strata insures the window itself; the owner insures any window coverings (blinds, curtains).

Who insures the balcony or patio? This depends on whether it's common property, limited common property (LCP), or part of the unit. In most BC stratas balconies are LCP, meaning common property assigned to one unit's exclusive use. The strata insures the structure (decking, railings, drainage). The owner insures anything they added (planter boxes, deck tiles laid on top of the original surface, outdoor furniture).

Example 1: The kitchen fire

An owner is cooking dinner; a pan catches fire; the fire damages the kitchen cabinets, ceiling, and a wall. The owner had renovated the kitchen three years earlier: quartz counters, new shaker cabinets, hardwood floor.

Strata pays for: Original drywall replacement, original ceiling repair, fire-damaged framing repair, original-style cabinets and counters and original flooring if those finishes were the developer's original spec.

Owner pays for (through their policy): The difference between original-spec cabinets and the renovated quartz/shaker cabinets, the difference between original flooring and the installed hardwood, contents (cookware, food, clothes if smoke-damaged), additional living expenses while the unit is uninhabitable, the strata deductible if charged back under SPA s. 158(2)(d) (cooking-related fires usually are).

Example 2: The roof leak

A roof leak develops over a top-floor unit. Water damages the ceiling, walls, original floor, and the owner's furniture.

Strata pays for: Roof repair, ceiling repair to original spec, wall and original floor repair, common property water damage.

Owner pays for: Damaged contents (sofa, art, books), additional living expenses, any improvements (e.g., the painted feature wall the owner did beyond original paint).

No deductible chargeback: The cause is common property (roof). SPA s. 158 doesn't apply.

Example 3: The bathroom renovation gone wrong

An owner renovates their bathroom. Six months later a hidden connection from the renovation fails and water damages units below.

Strata pays for: Common property damage in the path of the water (pipes, framing if affected), repair of original finishes in damaged units.

Owner pays for: Their own renovation work, damaged contents in their unit and in affected units (depending on liability finding), the strata deductible (the owner's renovation caused the loss, clear s. 158(2)(d) trigger), and likely a separate liability claim from the units below.

This is one reason owners should use licensed contractors and keep paperwork on every renovation. Documented professional work is a far better story for the adjuster than a DIY discovery.

What to do when you can't tell

When the demarcation is genuinely ambiguous (original finish vs improvement, common property vs unit, LCP vs unit), three resources help:

• Your strata plan and the developer's original disclosure statement (the manager has these)
• The adjuster's report (they make these calls professionally)
• The strata's bylaws, which sometimes expand or clarify s. 149

If you're an owner and you can't tell from those sources, ask the strata manager. We'll usually have an answer in one phone call. If you're a council member and you can't tell, ask the insurer's adjuster to put the demarcation in writing before any payment decisions are made. The CRT has decided original-finish-vs-improvement disputes on exactly this kind of ambiguity, and stratas tend to win when they can show the original developer specification documented separately from the owner's improvements.

The takeaway

If you remember nothing else: drywall out is strata, drywall in is yours. Two policies designed to meet at one line. Original developer finish is the strata's responsibility; everything you or a previous owner added is yours. Contents, liability, ALE, loss assessment, and deductible buyback are all owner-side and worth carrying at meaningful limits.

For the rest of the BC strata insurance picture see our companion posts: owner unit insurance basics, who pays the strata deductible, the claim process from incident to settlement, and how to lower your strata's premium.

Contact us if you're not sure whose policy is supposed to respond to something you're worried about.