Broker Brochure
When a water, sewer-backup, or fire loss emanates from a unit — not the common property — the unit owner can be held responsible for the strata corporation’s high deductible. This program increases the owner’s deductible coverage above their primary policy to close that gap.
The Problem
Insurers have substantially increased water damage and sewer-backup deductibles on the building policies arranged for residential and commercial strata corporations — and in some cases the “All Loss” deductible as well.
If the water damage or fire emanates from within an individual unit, and not from the common property, unit owners can be held responsible to pay these high deductibles.
Residential unit owners can buy deductible assessment insurance under their personal condo policy to cover this exposure — but it’s often capped at $25,000 to $100,000, which may not keep up with the strata corporation’s rising deductibles.
The Solution
Chutter has arranged coverage that brokers can offer their customers to increase a unit owner’s water damage deductible coverage up to $750,000 in total. There’s an option to add the peril of fire to cover off fire losses that fall under the “All Loss” deductible. The excess increases the limits available should the unit owner be found liable for the strata corporation’s deductible.
Fire peril is available on residential strata units only — not commercial.
Eligibility Criteria
Coverage sits in excess of the unit owner’s primary deductible coverage and is triggered only once the underlying policy has paid and its limits are exhausted. Prior water or fire losses can be submitted to deductiblebuydown@chutteruw.com for a separate quote.
Worked Examples
The excess fills the gap between the unit owner’s primary deductible coverage and the strata corporation’s deductible. See the full self-quote & bind limit tables for every primary-to-excess combination.
$100,000 is the minimum primary limit required for $150,000 of excess.
Figures are illustrative. Actual coverage, limits, and eligibility are subject to underwriting and the issued policy.
Brokers log on to the online portal to complete the application, obtain a quote, bind coverage, and issue policy documents.