Water Leaks in a BC Strata: Who Pays for Repairs and the Insurance Deductible?

A burst supply line, an overflowing bathtub or a failed window seal can damage several units and the common property in a single afternoon. Once the water is stopped, the argument often starts: who pays to fix it, and who pays the strata corporation's insurance deductible?

In BC, the starting points are the Strata Property Act and your strata corporation's bylaws. This article explains how repair duties, strata insurance, your own insurance and deductible chargebacks fit together, and what to do if you receive a bill you think is wrong.

Step one: who is responsible for repairing what

Section 72 of the Strata Property Act makes the strata corporation responsible for repairing and maintaining common property and common assets. The bylaws can shift some of that to owners, for example for limited common property an owner has the right to use, and can make the strata responsible for specified parts of strata lots.

If your strata uses the Standard Bylaws, or has not changed these parts of them:

• Owners must repair and maintain their own strata lot, and any limited common property they use, except for what the bylaws make the strata's responsibility (Standard Bylaw 2).
• The strata must repair and maintain common property, common assets, and certain parts of limited common property and strata lots, such as the structure and exterior of the building, and exterior doors and windows (Standard Bylaw 8).

Many strata corporations have replaced the Standard Bylaws with their own, so the first document to read after a leak is your strata's current registered bylaws. Our article on reviewing strata documents before buying explains where to find them.

Step two: the strata's insurance

Under section 149, the strata corporation must insure the common property, common assets, the buildings shown on the strata plan, and fixtures installed by the owner developer as part of the original construction. The insurance must be for full replacement value, except in prescribed circumstances, and cover the major perils set out in the regulations.

The strata must review its insurance each year, report on it at every annual general meeting, and tell owners and tenants as soon as feasible about any material change, including an increase in a deductible (section 154). Water damage deductibles can be large, so it is worth knowing yours before anything goes wrong.

Step three: who pays the deductible

The general rule is in section 158(1): paying the deductible on a claim under the strata's insurance is a common expense, shared by all owners through strata fees. Under section 158(3), the owners do not have to approve a special levy or a spending from the contingency reserve fund to cover a deductible needed to repair or replace damaged property, unless the strata has decided not to repair or replace it.

There are two main ways the cost can end up with one owner instead:

• A lawsuit or claim against the responsible owner. Section 158(2) preserves the strata's ability to sue an owner to recover the deductible if the owner is responsible for the loss or damage.
• A chargeback bylaw. Many strata corporations have bylaws that let them charge the deductible, or repair costs, back to an owner in defined circumstances. What the strata has to show depends on how the bylaw is worded. Some require the owner to be responsible for the damage, some refer to the source of the leak, and some contain other conditions. The wording, and whether the bylaw was validly passed and properly applied, can be challenged.

"Responsible" is often where the real dispute lies. A leak that started in your unit is not always caused by you. The age of the plumbing, a failed building component, or a pipe the strata should have maintained may all be relevant, which is why the evidence matters.

Step four: your own insurance

Section 161 allows owners to carry their own insurance, including for perils the strata does not insure, amounts above the strata's coverage, improvements to the original fixtures, fixtures that were not part of the original construction, loss of rental value, and liability for property damage and bodily injury.

In practice, owners should check whether their policy responds when the strata charges them a deductible, what limit applies, and whether it covers damage to their neighbours' units. If you rent out your unit, also check what your tenant's insurance and your rental agreement say.

When the damage is below the deductible

If the cost to repair is less than the strata's deductible, there may be no insurance claim at all. The cost then usually falls on whoever is responsible for repairing that part of the property under the Act and the bylaws, and on any person who caused the damage. Standard Bylaw 3(2), for example, prohibits owners, tenants, occupants and visitors from causing damage, beyond reasonable wear and tear, to the common property, common assets, or the parts of a strata lot the strata must repair and maintain under the bylaws or insure under section 149.

If you get a chargeback letter

• Ask for the basis. Request the bylaw relied on, the insurer's or contractor's findings on the cause, and the invoices.
• Gather your own evidence. Photos, plumber's reports, maintenance records and the timeline of when the leak was reported.
• Respond in writing. A written response puts your position before council and creates a record.
• Notify your own insurer. Do this promptly, even if you dispute the charge.
• Consider the forum. The Civil Resolution Tribunal can decide most strata claims in BC, of any amount, including maintenance and damage disputes such as chargebacks; see our overview of strata disputes and the CRT. A few kinds of claims fall outside it, such as some claims about the land itself, and belong in court.

If you are the owner whose unit was damaged by someone else's leak, the same questions apply in reverse: who is responsible, whose insurance responds, and whether the strata or another owner should bear the cost.

Facing a leak bill or chargeback? Have the bylaws and evidence reviewed

Our litigation lawyers can review your strata's bylaws, insurance and the evidence on cause, respond to a chargeback on your behalf, and represent you at the Civil Resolution Tribunal or in court if the dispute does not resolve.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.