What is the BC strata insurance crisis?

A 2020-present spike in commercial strata insurance premiums and deductibles across BC. Insurers pulled out of the market or repriced aggressively after large water-loss claims and broader catastrophe-reinsurance pressure. Premiums on many BC strata buildings doubled or tripled in the 2020–2022 window; deductibles that were $25,000 became $100,000–$250,000 in some towers. The province responded with Bill 14, in force August 14, 2020, which requires a strata to tell owners about material changes in its coverage, including a higher deductible; since April 1, 2023 the Form B carries a summary of the strata's insurance. Neither caps what an owner can be billed. The crisis has stabilized somewhat by 2026, but premiums remain materially higher than 2018 baselines and deductible levels carry through.

What is a strata Form B and what does it disclose?

Form B (Information Certificate) is a formal disclosure document under section 59 of the Strata Property Act. The strata corporation must provide it on request, typically within 7 days of a written request and a fee (capped at $35 by the Strata Property Regulation). Form B discloses: monthly strata fees, contingency reserve fund balance, current and pending special assessments, current bylaws, the most recent depreciation report status, the building's insurance coverage and deductible amount, any unpaid fees, and any pending litigation against the strata. It is the single most important document for a strata buyer and lender. Lenders read it, and a buyer should too.

What is a strata insurance deductible and why does it matter to a buyer?

The deductible is the dollar amount the strata corporation must pay out-of-pocket before the insurance kicks in. Pre-2020, $5K–$25K deductibles were common. By 2022, $50K–$250K deductibles became routine for towers with prior water-damage claims. When a covered loss occurs, the strata pays the deductible from the contingency reserve fund OR levies a special assessment on owners. There is no cap on what an owner can be billed. Section 158(2) of the Strata Property Act lets the strata corporation sue an owner who is responsible for the loss or damage to recover the deductible, and neither the Act nor the Strata Property Regulation, as consolidated to September 2026, limits the amount. A leak that starts in your unit can cost you the whole deductible, which is why owners carry their own coverage for it. Separately from any of that, a $250K deductible levied as a special assessment across 80 units is about $3,125 per unit: a real cost the listing premium does not surface.

What is a depreciation report and is it mandatory?

A depreciation report is a 30-year capital-planning study identifying the building's major systems (roof, building envelope, plumbing, elevators, parking membrane, etc.), their remaining useful life, and the projected cost to repair or replace them. It is the strata's capital-planning roadmap. Under the Strata Property Act amendments rolling through 2024–2026, depreciation reports are mandatory for stratas with 5+ units on a phased schedule. Verify the live status against the BC government strata depreciation reports page before relying on any specific deadline. The depreciation report is the single best predictor of upcoming special assessments: a 30-year-old building with a deferred roof replacement is essentially a special-assessment liability waiting to be triggered.

What is Bill 44 (2022) strata, and how is it different from the SSMUH Bill 44?

Two different Bills, both numbered 44, in different years. Bill 44 (2022), the Building and Strata Statutes Amendment Act, voided strata bylaws that prohibit or limit rentals, from November 24, 2022. A strata can still restrict short-term rentals of under 30 days, and its only permitted age restriction is 55 and over. Most BC stratas must now accept long-term rentals. Bill 44 (2023), the SSMUH bill, required municipalities to permit small-scale multi-unit housing on most single-family lots (a separate provincial intervention, see the SSMUH guide). Buyers searching online sometimes conflate the two. The 2022 strata bill matters for investors evaluating rental-friendliness; the 2023 SSMUH bill matters for detached-lot redevelopment.

How should a buyer evaluate a strata building's insurance posture?

Before subject removal, your agent and lawyer pull and review five things. First, the Form B, for the current coverage amount, the deductible, and any disclosed claims. Second, the master insurance certificate from the strata's insurer. Third, the council meeting minutes for the past 24 months, for any insurance discussion or claim. Fourth, the contingency reserve fund balance against recent special assessments. Fifth, the depreciation report, for capital work coming due. If the deductible is above $50K and there have been multiple water-damage claims in the building, expect either a coming-soon premium increase OR a special assessment OR both. The signal is rarely surprising once you see the documents.

What should I budget for unit-owner strata insurance on top of the strata's master policy?

Unit owners need their own policy, called a condo unit policy in BC. It covers four things: the unit's contents; improvements and betterments beyond the standard finish; loss assessment coverage, which is what responds when the strata charges the deductible back to owners; and personal liability. Typical 2026 BC market rate: $400–$1,200/year for a Lower Mainland condo, depending on size, claims history, and chosen liability limits. Lender-required for most insured mortgages. Size the loss assessment coverage against the strata's actual deductible rather than a default figure. Brokers commonly suggest carrying at or above it. So a $250,000 strata deductible points to $250,000 or more of loss assessment, not the $25,000 that often comes as standard. Compare 2–3 brokers; the BC market has tightened but is not uniform.

Can a lender refuse to finance a strata unit because of insurance issues?

Yes. CMHC and conventional lenders both apply qualitative reviews of strata documents. Several red flags have killed financing outright. An insurance coverage gap, or a master policy that expired in the past 12 months. A deductible above $250K with too little in the contingency reserve. A recent special assessment above 2% of unit value with another pending. Major active litigation against the strata. A self-insured strata, which is very rare in BC and almost always blocks financing. The lender's underwriting reviewer is reading Form B, meeting minutes, and depreciation report alongside the appraisal. Buyers should expect their lender to flag any of these, and should NOT remove subjects until the lender confirms financing in writing AFTER reviewing strata docs.

Strata reference

BC Strata Insurance Crisis

Last reviewed September 24, 2026 by Bronson Job PREC, REALTOR®Sources: BC Government, BC Financial Services Authority, Strata Property Act, BC Real Estate AssociationCC BY 4.010 min readUpdated annuallyHow we verify

A note from me: I’m Bronson Job, a REALTOR® (PREC) with Momentum Realty Inc., so I earn a commission when I help someone buy or sell. I write these guides to be genuinely useful — general information, not advice on your specific situation — and I take no payment from any third party named in them. How I verify.

If you are buying a BC condo or townhouse, the building’s insurance is part of what you are buying, and since 2020 it has been a moving target. Premiums on many BC strata buildings doubled or tripled, and deductibles that were once $25,000 climbed to $100,000 or more. This guide explains what happened, how to read a building’s insurance position from its strata documents before you remove subjects, and the warning signs a lender will be looking for in the same paperwork. The legal points here trace to the strata insurance entry in the Codex; premium and deductible ranges are industry-reported and vary by building.

Why deductibles exploded

Three forces converged 2018–2020. First, the global commercial insurance market hardened: reinsurers (the insurers’ insurers) repriced after years of catastrophic-loss accumulation, and that pressure cascaded down to BC strata policies. Second, BC’s aging strata stock (much of the Lower Mainland tower inventory is 1980s–2000s vintage) has accumulated water-damage and building-envelope claims at an above-trend pace. Third, several insurers exited the BC strata market entirely between 2019 and 2022, concentrating remaining capacity at fewer carriers and reducing competitive pressure.

The result: many Lower Mainland strata buildings saw premium doublings or triplings, with deductibles moving from $5K–$25K to $50K–$250K. Bill 14 (2020) and the Form B insurance summary (2023) made the deductible visible; neither caps what an owner responsible for a loss can be billed. The crisis has stabilized somewhat by 2026, but the elevated deductibles persist.

Worked examples

Example 1: Burquitlam tower with $250K water deductible

85-unit tower built 1998. Water-damage deductible jumped from $25K (2018) to $250K (2022) after two material claims. Contingency reserve currently $180K. Form B shows no pending special assessment, but a council-minute review reveals two roof leaks in the past 18 months. Buyer math: a third claim would exceed the contingency reserve by $70K, levied as a special assessment across 85 units = ~$823 per unit. Multiplied by realistic 2–3-claim trajectory, the buyer should budget ~$2–3K/year over the next 5 years on top of the strata fee. Listing premium does not surface this; Form B and minutes do.

Example 2: Walnut Grove townhouse with low deductible and healthy reserve

42-unit townhouse complex built 2014. Water deductible: $25K (held steady through the crisis because no material claims). Contingency reserve: $1.1M against a depreciation-report-projected $620K of capital expenditure over the next 10 years. Strata fee: $385/mo. This is what a healthy BC strata looks like in 2026. Buyer budget: $385/mo strata, a small annual increase, and minimal special-assessment risk. The premium captures most of the all-in cost.

Example 3: South Surrey low-rise with deferred depreciation report

32-unit low-rise built 2002. Form B shows current insurance and low deductible. But: the depreciation report is overdue (the most recent 5-year update was never commissioned, although the opt-out that once allowed that has been removed). Council minutes reveal an in-progress envelope study by an independent consultant. Council minutes also note the building has rainscreen retrofit work coming due. The overdue depreciation report is the red flag. Without an updated capital plan, the buyer is essentially writing a blank check on a building system that the council itself has refused to study. Subject-to-document-review here was an exit, not a formality.

Example 4: Fort Langley townhouse, investor evaluation post-Bill 44 (2022)

Buyer is an investor. Townhouse Form B shows a historical bylaw restricting rentals to family members only. Bill 44 (2022) Strata Property Amendment Act removed the strata corporation’s ability to ban rentals via bylaw, so the historical bylaw is no longer enforceable in most cases. Lawyer confirms; agent confirms. The investor proceeds. Five years ago this purchase would not have been viable; the 2022 statute change opened the rental thesis. Post-2022, most BC stratas are rental-friendly by default unless owner-occupancy or age-restriction exemptions apply.

The buyer’s pre-subject-removal strata document checklist

Form B: the Strata Property Act section 59 information certificate. Most recent.
Form F: certificate of payment (verifies no unpaid fees on the unit).
Master insurance certificate: current policy details, deductible per peril, renewal date.
Strata bylaws and rules: full set, with all amendments.
24 months of council meeting minutes: the operational ground truth Form B summarizes.
Depreciation report: most recent. Flag if deferred or not yet completed.
Annual financial statements and budget: 2 years of audited statements and current budget.
Special assessment ledger: past 5 years of special assessments, with reasons.
Litigation disclosure: any pending or threatened litigation against the strata.

Your agent and lawyer should review all of these before subject removal. The lender will be reviewing the same documents in parallel. If anything material flags, do not remove subjects until you have a written response from the strata council.

Frequently asked questions

What is the BC strata insurance crisis?
A 2020-present spike in commercial strata insurance premiums and deductibles across BC. Insurers pulled out of the market or repriced aggressively after large water-loss claims and broader catastrophe-reinsurance pressure. Premiums on many BC strata buildings doubled or tripled in the 2020–2022 window; deductibles that were $25,000 became $100,000–$250,000 in some towers. The province responded with Bill 14, in force August 14, 2020, which requires a strata to tell owners about material changes in its coverage, including a higher deductible; since April 1, 2023 the Form B carries a summary of the strata's insurance. Neither caps what an owner can be billed. The crisis has stabilized somewhat by 2026, but premiums remain materially higher than 2018 baselines and deductible levels carry through.
What is a strata Form B and what does it disclose?
Form B (Information Certificate) is a formal disclosure document under section 59 of the Strata Property Act. The strata corporation must provide it on request, typically within 7 days of a written request and a fee (capped at $35 by the Strata Property Regulation). Form B discloses: monthly strata fees, contingency reserve fund balance, current and pending special assessments, current bylaws, the most recent depreciation report status, the building's insurance coverage and deductible amount, any unpaid fees, and any pending litigation against the strata. It is the single most important document for a strata buyer and lender. Lenders read it, and a buyer should too.
What is a strata insurance deductible and why does it matter to a buyer?
The deductible is the dollar amount the strata corporation must pay out-of-pocket before the insurance kicks in. Pre-2020, $5K–$25K deductibles were common. By 2022, $50K–$250K deductibles became routine for towers with prior water-damage claims. When a covered loss occurs, the strata pays the deductible from the contingency reserve fund OR levies a special assessment on owners. There is no cap on what an owner can be billed. Section 158(2) of the Strata Property Act lets the strata corporation sue an owner who is responsible for the loss or damage to recover the deductible, and neither the Act nor the Strata Property Regulation, as consolidated to September 2026, limits the amount. A leak that starts in your unit can cost you the whole deductible, which is why owners carry their own coverage for it. Separately from any of that, a $250K deductible levied as a special assessment across 80 units is about $3,125 per unit: a real cost the listing premium does not surface.
What is a depreciation report and is it mandatory?
A depreciation report is a 30-year capital-planning study identifying the building's major systems (roof, building envelope, plumbing, elevators, parking membrane, etc.), their remaining useful life, and the projected cost to repair or replace them. It is the strata's capital-planning roadmap. Under the Strata Property Act amendments rolling through 2024–2026, depreciation reports are mandatory for stratas with 5+ units on a phased schedule. Verify the live status against the BC government strata depreciation reports page before relying on any specific deadline. The depreciation report is the single best predictor of upcoming special assessments: a 30-year-old building with a deferred roof replacement is essentially a special-assessment liability waiting to be triggered.
What is Bill 44 (2022) strata, and how is it different from the SSMUH Bill 44?
Two different Bills, both numbered 44, in different years. Bill 44 (2022), the Building and Strata Statutes Amendment Act, voided strata bylaws that prohibit or limit rentals, from November 24, 2022. A strata can still restrict short-term rentals of under 30 days, and its only permitted age restriction is 55 and over. Most BC stratas must now accept long-term rentals. Bill 44 (2023), the SSMUH bill, required municipalities to permit small-scale multi-unit housing on most single-family lots (a separate provincial intervention, see the SSMUH guide). Buyers searching online sometimes conflate the two. The 2022 strata bill matters for investors evaluating rental-friendliness; the 2023 SSMUH bill matters for detached-lot redevelopment.
How should a buyer evaluate a strata building's insurance posture?
Before subject removal, your agent and lawyer pull and review five things. First, the Form B, for the current coverage amount, the deductible, and any disclosed claims. Second, the master insurance certificate from the strata's insurer. Third, the council meeting minutes for the past 24 months, for any insurance discussion or claim. Fourth, the contingency reserve fund balance against recent special assessments. Fifth, the depreciation report, for capital work coming due. If the deductible is above $50K and there have been multiple water-damage claims in the building, expect either a coming-soon premium increase OR a special assessment OR both. The signal is rarely surprising once you see the documents.
What should I budget for unit-owner strata insurance on top of the strata's master policy?
Unit owners need their own policy, called a condo unit policy in BC. It covers four things: the unit's contents; improvements and betterments beyond the standard finish; loss assessment coverage, which is what responds when the strata charges the deductible back to owners; and personal liability. Typical 2026 BC market rate: $400–$1,200/year for a Lower Mainland condo, depending on size, claims history, and chosen liability limits. Lender-required for most insured mortgages. Size the loss assessment coverage against the strata's actual deductible rather than a default figure. Brokers commonly suggest carrying at or above it. So a $250,000 strata deductible points to $250,000 or more of loss assessment, not the $25,000 that often comes as standard. Compare 2–3 brokers; the BC market has tightened but is not uniform.
Can a lender refuse to finance a strata unit because of insurance issues?
Yes. CMHC and conventional lenders both apply qualitative reviews of strata documents. Several red flags have killed financing outright. An insurance coverage gap, or a master policy that expired in the past 12 months. A deductible above $250K with too little in the contingency reserve. A recent special assessment above 2% of unit value with another pending. Major active litigation against the strata. A self-insured strata, which is very rare in BC and almost always blocks financing. The lender's underwriting reviewer is reading Form B, meeting minutes, and depreciation report alongside the appraisal. Buyers should expect their lender to flag any of these, and should NOT remove subjects until the lender confirms financing in writing AFTER reviewing strata docs.

What to read next

· BC closing process: buyer timeline: where strata document review fits in the broader closing sequence
· Buyer due diligence (BC): the full strata and non-strata diligence checklist before subject removal
· Bill 44 (2023) SSMUH zoning: not the same as Bill 44 (2022) strata; SSMUH is the housing legislation
· BC closing costs: Form B fee, strata-document delivery, and adjustment-day strata fee allocation
· Transit-Oriented Development (Bill 47): strata wind-up pressure on TOD-area buildings adds an insurance-deductible variable to depreciation reports
· Form B, depreciation report, strata bylaws, and Bill 44 (2022) strata reform: the four glossary entries every BC strata buyer should pull before subject removal
· Affordability calculator and closing costs calculator: work the monthly strata fee into what you can borrow; lenders count half of it as a housing cost when they qualify you
· Langley City and Willoughby: two of the busiest BC strata-condo submarkets where insurance-deductible variance shows up in every Form B
· Codex: Strata Form B fee
· The Strata reference in the Codex: every BC strata fact (Form B, depreciation report, Bill 44 strata, SSMUH) with primary-source provenance
· BC Real Estate Codex

Sources: BC Government

Verified sources (3)· re-verified Aug 2, 2026Show sources

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.