Rental Smarts: How do we all know if our strata is correctly insured?

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Expensive Tony:

We stay in a 14-unit indifferent dwelling strata in Surrey. We bought our unit in 2014, and since that point, have at all times managed it as a naked land strata company. This included upkeep, repairs, and insurance coverage. Because of this, our strata charges had been very low at $75 per thirty days for primary highway upkeep.

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Our insurance coverage coverage lined our basic legal responsibility and some gadgets like our entry road gentle. A brand new purchaser moved in July 15 and knowledgeable us we now have been doing this all flawed, and the company should preserve buildings (they’ve a roofing subject), and the insurance coverage of the company is meant to cowl every dwelling as a typical expense.

We doubt we’re alone on this subject and discover it complicated. After we bought, the gross sales paperwork and salesperson indicated it was a naked land strata, and the strata charges had been all equal as a naked land. Is it doable that we got the inaccurate data and have been working opposite to the Act?

— Matthew G.

Expensive Matthew:

Sadly, you aren’t alone. There are numerous strata companies throughout the province that seem like a naked land strata, however they’re truly indifferent townhouse/constructing strata companies. They’re usually between two and 15 items and should have been supposed as naked land, however when the surveys had been accomplished, they weren’t created and filed as a naked land strata. The primary web page of a strata plan will establish if it’s a naked land strata company.

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In a naked land strata, the duty of the strata company is to take care of, restore and insure widespread property and customary belongings. Buildings not proven on the strata plan, on strata heaps, will not be the accountability of the strata company to take care of or insure. Each strata company in B.C. should preserve a duplicate of the registered strata plan, schedule of unit entitlement and schedule of voting entitlement. You’ll be able to receive this from the land title registry.

A naked land strata company should insure for all widespread property and customary belongings to their absolutely appraised values for the perils detailed within the Strata Property Act. The strata charges in a naked land strata, with a couple of exceptions, are usually equal.

A indifferent townhouse strata plan will present the buildings, the boundaries of the strata lot, the widespread and restricted widespread property. On this case, the strata company should preserve, restore, and insure all widespread property and customary belongings, together with the outside and construction of the buildings, for full substitute worth of the dwelling, together with authentic fixtures, for the perils outlined within the Act.

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In a indifferent townhouse complicated the place every unit is a separate dwelling, unit entitlements usually range and have to be utilized within the formulation filed.

A strata company just isn’t permitted to amend or alter the insurance coverage circumstances in a bylaw.

Now that you simply conscious of the error, right it as quickly as doable. At all times seek the advice of instantly with a dealer to verify you’re correctly recognized and insured.

Tony Gioventu is govt director of the Condominium Residence Homeowners Affiliation. Electronic mail [email protected].

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