Why Getting Fire Insurance on Top of Your Strata Insurance Is So Important
If you own a condo or townhome in BC, you probably know that your building already has strata insurance in place. It’s easy to assume that means you’re fully covered but here’s the truth: strata insurance doesn’t protect everything, and that’s where your own fire insurance (also known as condo unit insurance) becomes essential.
As your friendly BC mortgage professional, I’ve seen too many homeowners caught off guard by what strata insurance doesn’t cover. Let’s break it down so you can stay fully protected.
What Strata Insurance Actually Covers
Your strata corporation is responsible for insuring the building itself and the common areas — things like the roof, elevators, hallways, parkades, and exterior walls.
That policy also covers the original fixtures that came with your unit (think builder-grade flooring, cabinets, and countertops).
But here’s the key point: strata insurance stops at your unit’s interior walls.
What Strata Insurance Doesn’t Cover
There’s a lot inside your unit that’s your responsibility and strata insurance won’t cover it if something goes wrong. For example:
Your personal belongings – furniture, electronics, clothing, and valuables
Upgrades or renovations – hardwood floors, new countertops, custom lighting
Damage from inside your unit – like a kitchen fire or a burst pipe
Strata deductibles – if you’re found responsible for damage that affects the building, you could be on the hook for the deductible (which can be tens of thousands of dollars!)
Without your own insurance, those costs come straight out of pocket.
Why Fire Insurance (Unit Insurance) Matters
Your condo or townhouse fire insurance protects what strata insurance doesn’t — it covers your personal property, any improvements you’ve made, and your liability if something in your unit causes damage to others.
In the event of a fire, even a small one, you could face smoke damage, lost belongings, and temporary relocation costs. A personal fire insurance policy helps you recover faster and protects your finances from serious setbacks.
A Real-World Example
Imagine a kitchen fire that starts in your unit and spreads smoke into the hallway. Strata insurance will cover the building’s structural repairs but the damage inside your suite (cabinets, flooring, furniture) is your responsibility.
If you don’t have your own insurance, replacing all of that, plus covering potential strata deductibles, could be devastating financially.
The Bottom Line
Strata insurance and your own condo fire insurance work together to give you complete protection. One covers the building; the other protects you and everything that makes your home yours.
It’s one of the most important (and affordable) ways to safeguard your investment and your peace of mind.
If you’re purchasing a condo or townhouse, or even just reviewing your current coverage, let’s chat! I’m always happy to connect you with trusted insurance professionals who understand what BC homeowners need.