As an owner you should have a condo insurance policy. While not a legal requirement, this policy protects your property as well as improvements made to your unit. It is also important because it reduces your exposure to the strata association if an incident originates in your unit. This is in the spotlight as a result of rising insurance deductibles.

The strata insurance market has been shifting dramatically in recent years, with premiums and deductibles on the rise. This means that it costs more to have coverage, and also to use it. Take a strata whose water deductible has gone from $10,000 to $75,000. If a leak originated in your unit (toilet, dishwasher, etc) you have to reimburse the strata for its deductible. If your personal policy doesn’t cover that $75,000, you will have to pay out of pocket.

Higher coverage required to pay strata deductibles has a knock-on effect on your premiums, which will also rise. Your deductibles could also go up as you try to offset the increase in premiums. Those have an inverse relationship: the higher your deductible, the lower your premium, as it means you will cover more of a loss before your insurance kicks in.

So do you need condo insurance? You are strongly advised to get coverage, even though the bottom line for owners of strata properties is that until the market conditions change, you’ll be paying more for both your strata’s insurance and your own.

If you are looking for coverage, here are a some providers to consider:

InsurerMinimum LimitMaximum Limit
Square One$20,000$250,000
Note: Limits and availability may change. Check with provider for latest offerings.


At Eli Report, we empower owners and buyers in multi-family communities to help them understand what matters. Curious about your strata? See how you stack up against other stratas of a similar type and age. Ask your property manager or sign up and run a free Eli Report.