BC Strata Corporations: Who is responsible for repairing damages when a loss occurs?

The following is a general guide to help understand how the responsibility for repairs may be governed in cases where the strata corporations’ insurance policy is not trigged. This bulletin is not intended as legal advice.

How is responsibility to complete repairs determined?

It is the strata’s bylaws that determine who is responsible to repair damage. The following shows how a typical set of bylaws would assign the duty to repair for both the strata corporation and individual unit owners:

The above follows the Strata Property Act of BC Schedule of Standard Bylaws (#2 and # 8). However, it is critical to review the bylaws specific to each strata corporation to determine responsibility to repair.

How does the cause of loss or source of damage influence the responsibility to repair?

This is critical: It does not. The responsibilities of the strata corporation and individual unit owners are not changed, influenced or altered in any way by how the loss or damage occurred.

Example 1: If a unit owner drags a couch down a common hallway causing damage to the carpeting, the strata is still responsible to repair that damage. The fact that an owner caused it does not change this.

Example 2: If a unit owner on the second floor leaves their sink running that causes damage to a unit on the first floor, it is still the first-floor owner’s responsibility to repair their unit. The fact that the second-floor unit owner caused the loss does not influence, change or alter the first-floor unit owner’s responsibility to repair their unit.

Example 3: If water begins leaking into a townhouse unit through the roof during a rainstorm, the unit owner is responsible for repairing the interior damage. The strata corporation will likely be required to repair the roof itself.

If the strata corporation insures it, shouldn’t they repair it?

Not necessarily. The duties of the strata corporation to insure and to repair are distinct and separate under the BC Strata Property Act. The same is true of a unit owner’s right to insure and the duty they have to repair. This can be a confusing concept for those in other provinces such as Alberta or Ontario, where legislation around the duties to insure and repair are more closely aligned.

What if I didn’t cause the damage or contribute to the cause?

Whether you are a unit owner or the strata corporation, your responsibility to repair certain property is not impacted by how the damage occurred. Innocence or fairness do not factor in with respect to how the Strata Property Act or bylaws allocate responsibly to repair.

That said, certain avenues are available to strata corporations and unit owners to recoup the repair costs they have incurred. The strata corporation may have bylaws that allows it to assess or “charge-back” a certain unit for costs it has incurred to repair what it is responsible for.

The recourse available to strata unit owners is a legal one. Specifically, if a unit owner pays for damages caused by another party’s actions or inactions, they may be able to pursue that party based on an argument for liability through formal written demands and filing legal actions. Owners who use their personal insurance can rely on their insurer to pursue these opportunities, where the insurer agrees they are feasible, on the owner’s behalf. Owners who are not insured or choose not to engage their policy should seek legal advice.

When a loss occurs, what happens?

If a loss affects multiple areas of the building, such as common property, strata units or lots, many strata corporations will take the lead to stop the cause of the loss (i.e., a burst pipe) and stabilize and assess damage for which they may be responsible to repair under the bylaws (i.e., building structure). To this end, a strata corporation may involve a restoration firm when a loss first occurs. Note that the bylaws may still permit the strata corporation from recovering costs they incur to undertake this.

Once the loss is stabilized and subject to the specific bylaws applicable, if it is found that the total cost of loss is below the strata corporation’s insurance deductible, the responsibility to repair will typically follow the allocations noted in the table at the beginning of this article.

If the loss clearly does not involve common property, common assets or aspects of a strata lot for which the strata corporation is responsible to repair, the strata corporation may not become involved at all. In that case, the strata unit owner may need to assume all mitigation and repairs from the start.

It is critical for unit owners to involve their strata corporation and/or property manager as soon as possible following a loss. This provides the strata corporation the opportunity to investigate and take any action they may be responsible for under the bylaws. It also may help determine who is responsible for what damage more quickly.

What should an owner do after a loss to their unit has occurred?

In addition to notifying the strata corporation and property manager, if the owner has a personal insurance policy, they should contact their insurer immediately. This policy would be the only coverage the owner has for things, such as personal belongings, unit improvements and possible additional living expenses. This policy may also offer coverage for potential exposures, such as rental income loss, strata corporation assessments and the unit itself in the event the strata corporation’s policy does not provide coverage.

Disclaimer: This bulletin is intended to provide readers with general information only. Readers are urged not to rely solely on the content of the bulletin but to consult with appropriate professionals on a case-by-case basis.