The strata corporation’s policy and your own townhome policy do different jobs. Before removing subjects on a Penticton or South Okanagan townhome, compare both policies, understand the deductibles, and confirm that your insurer can cover the risks attached to the specific unit.
Start with the two-policy reality
A strata-titled townhome does not work like a detached house from an insurance perspective. The strata corporation carries insurance for common property, common assets, buildings shown on the strata plan, and certain original fixtures. Your personal policy is meant to address owner-level needs such as contents, liability, additional living expenses, improvements, and possible exposure to a strata deductible.
The Province of British Columbia explains that all strata corporations must maintain property and liability insurance, but that coverage is not a replacement for owner insurance. That is the first question to settle during due diligence: what does the strata insure, and what remains your responsibility?
Buyer takeaway: Do not assume “the strata has insurance” means the unit is fully protected. Ask an insurance broker to review the strata insurance summary beside a proposed owner policy before subject removal.
The insurance documents to request
Ask for the current strata insurance summary or policy, then make sure it is still current. The Province notes that an insurance summary must be attached to a Form B when one is requested. Also read recent council and AGM minutes for material changes, claims, coverage reductions, or deductible increases.
- Current insurance summary: insurer, policy dates, insured values, major deductibles, and listed coverage.
- Form B: confirm the attached insurance information matches the package you are reviewing.
- Recent minutes: look for water losses, fire claims, premium increases, coverage restrictions, and deductible changes.
- Strata plan: determine whether the property is a conventional strata or bare land strata, because building responsibility can differ.
- Alteration records: identify upgrades and betterments that may need owner-level coverage.
Pressure-test the strata deductibles
Deductibles are one of the biggest insurance issues for strata buyers. The BC government notes that strata corporation deductibles can range from $100,000 to $750,000 or higher, depending on the property and claims history. That is not a prediction for a particular Penticton complex; it is a reminder to read the actual policy rather than rely on a typical number.
If an insured loss originates in an owner’s unit and the owner is deemed responsible, the strata may seek to recover its deductible. The Province also explains that responsibility does not necessarily require negligence. A failed appliance hose can create major damage even when the owner did not intentionally do anything wrong.
Show the water, sewer backup, fire, and any other material deductibles to your insurance broker. Ask whether the proposed owner policy includes enough strata deductible assessment or loss-assessment coverage, and ask about exclusions and sub-limits.
What your owner policy should be discussed around
A knowledgeable broker can recommend the exact policy. Your job as a buyer is to provide the right documents and ask direct questions. Useful topics include:
- Personal contents: realistic replacement cost for furniture, electronics, clothing, sports equipment, and other belongings.
- Personal liability: protection if you or a visitor unintentionally causes injury or property damage.
- Additional living expenses: temporary accommodation and extra costs if an insured loss makes the home unlivable.
- Improvements and betterments: flooring, cabinetry, counters, appliances, or other upgrades beyond the original standard.
- Strata deductible exposure: the policy limit and conditions if the strata seeks recovery from you.
- Water, sewer backup, earthquake, vacancy, rental, or home-business coverage: discuss whichever risks match the property and your plans.
Townhome details buyers often miss
Bare land strata
In a bare land strata, the individual home may not be insured by the strata corporation because the building is not shown on the strata plan. The Province recommends that bare land strata owners consider a bare land endorsement. Confirm the strata type and building responsibility before assuming a conventional condo-style policy will work.
Original fixtures versus owner upgrades
The strata policy may respond to original fixtures, while your owner policy may need to address later improvements. Renovation records and the strata’s standard-unit description, if available, can help the broker understand the gap.
Lock-and-leave or seasonal use
If you plan to leave the property vacant for extended periods, ask about vacancy or unoccupancy conditions, required inspections, water shutoff expectations, and whether a tenant or home-based business changes the policy.
Exterior responsibility
Townhomes can blur the visual line between “my home” and common property. Patios, decks, fences, roofs, windows, garages, and yards may be common property, limited common property, or part of the strata lot depending on the plan and bylaws. Insurance and maintenance responsibility should be confirmed from the documents, not guessed from appearance.
A practical pre-subject-removal checklist
- Obtain the current strata insurance summary and confirm the policy period.
- Read the deductibles and note any separate water, sewer, earthquake, or other deductibles.
- Review recent minutes for claims, increases, exclusions, or pending policy changes.
- Confirm whether the home is conventional strata or bare land strata.
- List renovations, upgrades, appliances, and high-value contents for the broker.
- Tell the broker about pets, rentals, seasonal vacancy, a home business, or other relevant use.
- Get written confirmation that coverage is available on terms acceptable to you.
- Coordinate the insurance effective date with completion and possession.
Rico’s practical rule: Insurance should be investigated during the subject period, not the day before completion. If the broker identifies a gap, you still need time to ask the strata, seller, or listing agent for clarification.
Insurance red flags worth slowing down for
A red flag is a prompt for more information, not an automatic reason to walk away. Slow down if the package contains an expired summary, rapidly rising deductibles, repeated water losses, material coverage reductions, unresolved building-envelope issues, a mismatch between the strata plan and the assumed insurance responsibility, or an owner policy quote that excludes a risk important to the property.
Insurance also connects to the broader health of the strata. Deferred maintenance can contribute to losses and cost pressure. Pair the insurance review with a full townhome strata document review so you can see the relationship between claims, maintenance, reserves, and planned repairs.
FAQ: BC townhome insurance for buyers
No. The Province says strata corporation insurance does not cover an owner’s household contents, personal liability, additional living expenses, or many owner-level needs.
Start with the current strata insurance summary attached to the Form B package, then check recent AGM and council minutes for changes. Give the summary to your insurance broker.
The strata may seek recovery if the owner is deemed responsible for the loss. The exact facts and policy wording matter, so discuss the exposure with an insurance broker and obtain legal advice when needed.
It can be. In many bare land stratas the individual home is not part of the strata corporation’s insured building. Buyers should confirm the strata plan and discuss a bare land endorsement with their broker.
Begin during the subject period, after receiving the strata insurance package. Confirm acceptable coverage before removing the insurance-related subject and coordinate the effective date with completion and possession.
Authoritative sources
- Province of British Columbia: Strata owner and tenant insurance
- Province of British Columbia: Insurance for strata corporations
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