Strata Insurance & Deductibles for Condos or Townhomes Explained

strata insurance deductibles


If you own a condo apartment or townhouse, then you probably pay for insurance to cover your unit in case of any damage to the apartment or townhouse itself through your own personal condo insurance or home insurance.

However, you also pay extra insurance for additional coverage to the entire complex through your strata fees. The two insurance policies (personal vs strata) cover different aspects of the property and they come with their own deductibles. Read on to learn more about strata insurance coverage, deductibles, and how they differ from personal condo or townhouse insurance policies.


Strata Insurance vs Personal Insurance, What’s the Diff?

There are some big differences between what your personal condo or townhouse insurance covers & costs vs. what your strata’s complex insurance covers & costs.


Personal Condo or Townhouse Insurance Coverage

Your personal insurance for your condo or townhouse which you pay directly to an insurance company personally only mainly covers your actual unit, the personal belongings within it, and liability coming from the unit itself. This insurance does not cover the rest of the condo or townhouse complex.


personal condo townhome insurance claim deductible


What Strata Insurance Covers

A portion of your strata fee pays into an additional insurance policy to cover the condo or townhouse complex itself. In fact, strata corporations are required to obtain and maintain property insurance and liability insurance.

If you’re in a condo apartment building, this strata insurance covers the overall building structure itself, any publicly shared areas attached to the complex, the exterior, landscaping, accessories like garages, playgrounds, pools and fitness centers.

The same goes for if you’re in a complex of townhomes too. The strata insurance still covers some of the overall complex structure itself, any public areas attached to the complex, the exterior landscaping, playgrounds, pools, fitness centers, etc.


Condo and Townhouse Insurance Claim Deductibles

Just like you have deductibles to consider if you’re going to make a claim through your personal insurance provider, your strata group also has deductibles to consider if they’re going to make a claim through their own insurance provider. Making claims in an insurance policy often has the ability to raise the risk & costs of the policy, so whether to make the claim or pay out-of-pocket is not a decision to take lightly. For the complex, this can mean the strata producing a full insurance loss assessment in order to properly consider & present all options to owners.


building insurance damage claim deductible


Speak to a Professional

Contact us today if you have any pending questions about strata insurance coverage, deductibles, and how they differ from personal condo or townhouse insurance policies.

Ask Us Anything