This is a growing problem in Canada and in British Columbia in particular with the rapid rise in condo development all over the province. As strata insurance rates continue to rise, many strata councils are increasing their deductibles to offset rising costs.
For example, if you live in a high-rise condo that’s insured for $50 million with an earthquake deductible of 15%, the deductible is $7.5 million. If there are 200 units in the building, owners would pay an average of $37,500 each to cover this deductible.
Luckily, condo unit owners can purchase excess insurance to essentially buy-down that deductible.