Strata Insurance in BC After the 2020 Crisis: Where We Stand

Years after the BC strata insurance market broke in 2020, councils are still navigating its aftershocks. Strata insurance in BC doesn't behave like home insurance, premiums are larger, deductibles are higher, the carriers are fewer, and underwriting questions about wildfire and water loss can decide whether a building gets renewed at all. We've sat at many council tables across Squamish and the Sea to Sky, and current renewal seasons look materially calmer than 2020, but they're not normal. Below is what happened, what's stabilized, what hasn't, and what every BC council should be doing right now to protect renewability.

What broke in 2020

Before 2020, BC strata insurance was a forgettable line item. Premiums were modest, water deductibles were low, and renewals were routine. Then in late 2019 and through 2020, three compounding forces hit at once:

1. Years of claim losses. BC stratas, especially in the Lower Mainland, had been generating water-damage claims at rates that exceeded premium income. Insurers were paying out more than they collected.
2. Global reinsurance hardening. Reinsurers (the insurers behind your insurer) tightened terms after a string of global natural disaster losses. Capacity shrank, prices rose.
3. Carrier exits. Several large carriers, including some that had been writing BC strata for decades, exited the market entirely. The number of insurers willing to write strata in BC dropped materially.

The result for BC stratas:

• Premiums increased sharply at renewal, often doubling or tripling
• Water deductibles jumped by roughly an order of magnitude
• Buildings with claim history were non-renewed and scrambled for last-resort coverage
• Some larger buildings ended up with very significant absolute premium increases

The crisis prompted a BC government review, BCFSA guidance updates, and amendments to SPA s. 158 and s. 159 on insurance requirements and disclosure.

Where the market is in 2026

The acute panic of the early 2020s has eased. Most well-managed BC stratas now experience renewal cycles like this:

What's improved since the peak:

• Year-over-year increases are no longer routinely double-digit for clean buildings
• Some buildings see flat renewals or single-digit increases
• A handful of new MGAs and reinsurers have re-entered the market
• Underwriting is more predictable; brokers can quote with confidence again

What hasn't improved:

• Premiums remain materially above pre-2020 baselines
• Deductibles remain elevated, especially for water claims
• Capacity is still thin, only a few carriers will write buildings over a certain size or risk profile
• Buildings with repeated water claims in a short period face renewal trouble
• Wildfire and FireSmart underwriting has become aggressive in interior and Sea-to-Sky BC

How FireSmart and wildfire risk changed the game

Recent BC wildfire seasons shifted how insurers price stratas in the wildland-urban interface. The Sea to Sky is squarely in that interface. Whistler, Pemberton, and parts of Squamish are now treated by underwriters the way long-standing interior wildfire-zone communities have been for years.

Underwriting questions that didn't exist before but are now standard in renewal applications:

• Has the strata completed a FireSmart Canada assessment?
• What vegetation management plan exists within 30 metres of buildings?
• Are roofs Class A fire-rated assemblies?
• Are decks, balconies, and soffits built with ignition-resistant materials?
• Is there an evacuation plan and emergency access on file with local fire?
• Are there ember-resistant vents on the building?

Buildings that answer well see meaningfully better pricing than peers. Buildings that answer poorly, or can't answer, see surcharges, restricted terms, or in extreme cases non-renewal.

What the SPA requires

Strata Property Act s. 149 sets out the corporation's mandatory insurance: full-replacement-value property insurance, liability insurance, and (for buildings with employees) workers' compensation. Section 150 mandates fidelity insurance to protect against theft by people handling strata funds.

The corporation's policy covers the building structure, common property, and (in most cases) original-spec fixtures inside units. It does not cover:

• Owner contents (furniture, electronics, clothing)
• Owner liability (slip-and-fall in the owner's unit)
• Owner-installed upgrades (custom finishes, renovations)
• Loss assessment from special levies
• The strata's deductible, owners may be on the hook under s. 158

This is why every owner needs their own strata owner's insurance policy. The gap is significant and uninsured owners get hit hard when the corporation's deductible lands on them.

Strategies for keeping a BC strata renewable

What every BC council should be doing in 2026 to keep renewal options open:

1. Use a strata-specialist broker. Generalist brokers can't access the best BC strata markets. A small number of brokers specialize in BC strata, your manager should know them, and have relationships across the active carriers.
2. Prevent water claims aggressively. Hot water tank replacement schedule (older tanks are red flags), main shut-off valve testing, in-suite shut-offs where possible, leak-detection devices in higher-risk units. A couple of water claims is the unofficial threshold for renewal trouble.
3. Complete a FireSmart assessment. If you're in the Sea to Sky or interior, this is no longer optional. FireSmart Canada offers free strata-level assessments.
4. Fund your contingency reserve adequately. Underwriters look at depreciation report compliance and CRF balance. A well-funded CRF signals a building that won't defer maintenance into a claim.
5. Maintain an annual maintenance log. When the underwriter asks "what proactive maintenance was done this year," council should have an answer in writing.
6. Disclose accurately. Misrepresentation on insurance applications can void coverage. If you've had claims, disclose them. If your envelope is aging, say so.
7. Get a depreciation report on schedule. Required under s. 94; underwriters increasingly ask to see it.

Where to focus first

For most councils, the priority order is:

The 2020 crisis isn't fully over. Insurance is the largest discretionary line item on most BC strata budgets, and the gap between best-managed and worst-managed buildings at renewal is wider than ever. For deeper reading, our posts on strata corporation insurance coverage, deductibles and owner liability, and water-damage prevention are good next steps.

If your strata council is heading into a renewal and wants a sanity check on the quote, the broker relationship, or the FireSmart documentation, reach us through the contact form or at our Garibaldi Highlands office. We've been through enough renewals across the corridor to know what good looks like, and what to push back on.