At the 2024 AGM an owner asked a question about the Strata Corporation’s Earthquake deductible. Here’s some more info on the subject.
The Strata Corporation’s insurance policy’s deductible for earthquakes is 10% of the strata’s assessed replacement value. This has not changed in the years that I have been Treasurer, however, each year the cost to rebuild our strata has gone up, therefore the amount of the deductible has gone up correspondingly. In 2023, the strata was assessed for insurance purposes as costing $19,651,000 to rebuild. This means that in the event of a total loss due to an earthquake, the strata corporation’s deductible would be $1,965,100. Each unit would be assessed their share of this deductible based on the unit’s entitlement. For more info on entitlement, visit: LLE Insurance.
Discussion at the AGM included comments from various unit owners and it became apparent that some owners are paying a lot more for coverage of their share of the Strata’s deductible than others are paying, depending on their insurance broker.
My personal condo owner’s insurance policy includes: Condominium Deductible Assessment Coverage: $50,000 (for earthquakes and any other deductible the strata might incur). This will cover our unit’s share of any Strata Corporation Deductible incurred up to $50,000.
Our premium for this coverage is $120/year. If we wish to be covered up to $75,000, the premium would be $195/year (an addition $75). Note: our unit is covered by Lloyd’s Underwriters through Waypoint, but Lloyd’s does not offer deductible coverage in increments of $25K, so if we choose to be covered for $75,000, Waypoint would move our policy to another insurance company.
I hope that answers any lingering questions from the meeting discussion.
Suzan Chamney
LLE Treasurer