Insurance
An owner of a strata lot negotiated with the owner developer to install hardwood floors and other upgrades to his strata lot during the original construction of the building. This is the only strata lot in the building with these upgrades. Does the strata corporation have to insure these upgrades?
Yes. Section 149(1)(d) of the Strata Property Act imposes on the strata corporation an obligation to obtain property damage insurance on all fixtures installed by the owner developer as part of the original construction of the strata lot.
A tenant has been named as a defendant in a lawsuit commenced by a visitor who tripped and fell on the common property, suffering personal injury. Is the tenant entitled to the benefit of the strata corporation's liability insurance?
Yes. Section 155 of the Strata Property Act states that, regardless of what the insurance policy itself says, all owners, tenants and persons who normally occupy a strata lot are named insureds on the strata corporation’s insurance policy.
What is the minimum liability insurance coverage required for a strata corporation?
The minimum amount of liability coverage required for a strata corporation is two million dollars. A strata corporation should seek higher liability coverage if it has common property amenities such as a swimming pool or a fitness facility.
The strata corporation has obtained $1.5 million in liability coverage – is that enough?
No, under Strata Property Regulation 9.2, a strata corporation must have at least $2 million in liability coverage.
At the AGM, council said nothing about insurance. Is that a breach of the Act?
Section 154 of the Strata Property Act requires an annual review of adequacy of insurance; and a report on insurance coverage at an annual general meeting.
How long must a strata corporation retain copies of insurance policies?
Strata Property Regulation 4.1(7)(b) requires a strata corporation to maintain any insurance policy for at least 6 years from the date of expiry.
Council refuses to allow an owner permission to look at or obtain a copy of the strata corporation's insurance policy. May council do that?
No. An owner, as a named insured and pursuant to section 36(1) of the Strata Property Act, is entitled to look at and obtain a copy of the strata corporation’s insurance policies.
