Did you know your strata may force you to pay for their water damage deductible?

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A common misconception is that the building's insurance policy is a catch-all safeguard for any incident, but this is far from reality. When it comes to condominiums, the responsibility often falls on the buyer to cover certain damages, regardless of fault. Here's the crucial bit: while the building's policy does insure the structure and units, it doesn't extend to personal upgrades or belongings within the unit. This gap in coverage can lead to significant financial risks, especially in cases of water damage, fire, or if a guest is injured within your unit.

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Who pays the deductible for water damage to multiple strata units?

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The intricacies of condominium insurance policies, particularly the deductibles, can be baffling. These deductibles, regarding the unit owner's policy, often ranging from $1,000 to $5,000, become the owner's burden in the event of damage to their unit only. However, in the case of an overflowed bathtub in your unit causing damage to another, your policy will typically not cover external damage, thus, the strata's policy will pick up these damages. The problem becomes a major issue if the Strata's Deductible is in the hundreds of thousands of dollars and your policy only covers a portion of their deductible. The difference could be financially devastating without Strata Deductible Protection.

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The real kicker? Trying to contest these charges in cases where you believe the condominium corporation was negligent is often more costly in legal fees than the deductible itself. The smart move? Ensuring adequate XS water damage insurance coverage. A key step in protecting yourself is reviewing the strata's insurance deductibles, which outlines the building's insurance policy and how much you may be on the hook for. Entering the differences between what your policy pays and what your strata could charge will bridge any gaps in the building's coverage.

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Why water damage claims are now such a big deal in BC

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In the intricate world of strata living, owners often grapple with the financial implications of their strata corporation's insurance deductibles. These deductibles, escalating beyond $100,000, represent a substantial fiscal burden if your insurance policy only covers a portion of this. XS water damage insurance emerges as a beacon of relief, absorbing the unit owner's obligation to pay the entire deductible when deemed at fault.

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In scenarios where an insurance claim against the strata corporation springs from an individual's unit, the legal landscape permits the corporation to seek reimbursement of the deductible from the strata lot owner, regardless of culpability in the causation of the loss.

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Judicial precedents have sculpted a nuanced interpretation of responsibility in insurance claims, detaching it from the necessity of fault by the strata owner. Consider the example of a malfunctioning dishwasher in a strata unit leading to water damage in communal areas and adjacent lots. Here, the strata owner, irrespective of personal fault, may find themselves liable for the strata corporation's insurance deductible.

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The annual ritual of reassessing strata homeowner insurance demands a discerning conversation with a well-versed strata insurance broker. Possessing a copy or summary of the strata corporation's insurance policy aids in bridging any potential coverage chasms.

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Deliberation over the corporation's insurance policies should extend to an examination of deductible amounts with one's broker, ensuring that the strata owner secures sufficient coverage to either meet the deductible or the loss cost, should it fall beneath the deductible threshold.

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What if my Renter Causes Water Damage?

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The tapestry of insurance for strata tenants (renters) is equally intricate. The insurance coverage of the strata corporation and the landlord (strata owner) offers no refuge for tenants. Tenants are thus considered liable for their actions by the unit owner. When buying insurance always ask for renters protection if you rent your unit out.

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Tenants insurance is available, and should be required to be purchased, but it typically will not cover the strata's deductible.  Losses incurred by tenants or their visitors find no shelter under the insurance policies of the strata corporation.

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Next:  What is strata water damage deductible insurance and how does it work?
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