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Guidelines for Water Damage Excess Deductible Coverage

The Problem

Insurers have substantially increased water damage and sewer backup deductibles on the building insurance policies arranged for residential Strata Corporations. If the water damage emanates from within an individual unit in the building and not from the common property, Unit Owners can be held responsible to pay these high deductibles. Unit Owners can purchase deductible assessment insurance under their personal condominium unit owner’s insurance to cover this exposure.  However, in many instances, this is capped at anywhere from $25,000 to $100,000, which may not be enough to keep up with the increasing Strata Corporation deductibles.

The Solution

Chutter Underwriting Services has arranged coverage for our brokers to provide to their customers that can increase the condo Unit Owners water damage deductible coverage up to $750,000. Our excess coverage increases the Unit Owners limits available should the Unit Owner be found to be liable and is responsible for the Strata Corporations deductible. Brokers can log on to our online portal to complete the application, obtain a quote document, bind coverage and issue policy documents.

Example 1

Example 2

Broker Registration Process

**PLEASE NOTE** You can only register by clicking on the registration instructions below.

  • If you encounter any issues registering, please email: deductiblebuydown@chutteruw.com

  • All brokers must first register to gain access to the online system.  

For Full Registration Instructions Click Here.

For Brokers who have already registered and have online portal access, Sign in Here.

Application Process

  • If you have any issues while completing the application, please email: deductiblebuydown@chutteruw.com​

  • An application must be completed in full for each coverage request (one unit per policy).

  • Residential Condos must have a primary condo unit owners policy in effect, with a minimum of $25,000* strata deductible buydown coverage.

  • Commercial Strata units must have minimum $25,000** Self Insured Retention amount.
     

       Required information to complete Residential Application:

  • From Residential unit owner’s insurance policy:

    • ​The Strata Deductible Assessment Coverage limit.

    • The policy number and expiry date.

    • The name of the Insurer.

  • ​From Strata Corporation’s Policy Summary:

    • ​Strata Corporation’s Water Damage Deductible amount.

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       Required information to complete Commercial Application:

  • From Commercial Strata unit owner’s insurance policy:

    • ​The operations of the Insured.

    • The effective date.

    • The expiry date.

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  • The Commercial application is for owners without an underlying policy, who agree to a Self Insured Retention limit (the dollar amount to be paid by the Named insured or on behalf of the named insured before there is any liability by the insurer under this policy).

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Quoting and Binding 

  • You cannot quote and bind on the same day; you must advance the effective date to bind coverage.

  • We recommend aligning the deductible buydown policy term with the Strata Corporation’s policy term, as their policy dictates the necessary buydown coverage. If the Strata’s policy deductible changes at renewal, the terms of the deductible buydown policy must be updated accordingly.

  • After submitting the application, a PDF quote document will be available to download and send to your client for approval.

  • You can edit a quote by clicking on the pencil icon.

  • Do not enter the amount of excess coverage you want. Our system calculates excess water damage deductible coverage from the strata's water damage deductible amount and the limit of coverage on the unit owners policy/Self Insured Retention amount. The excess amount bridges the gap in coverage.

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  • Residential Condominiums – Self-Quote & Bind maximum limit* of excess coverage is $650,000.​

    • $25,000 primary up to $75,000 excess​

    • $35,000 primary up to $65,000 excess

    • $50,000 primary up to $450,000 excess 

    • $75,000 primary up to $425,000 excess

    • $100,000 primary up to $650,000 excess

    • $200,000 primary up to $550,000 excess

    • $250,000 primary up to $500,000 excess

    • $300,000 primary up to $450,000 excess

    • $350,000 primary up to $400,000 excess

    • $500,000 primary up to $250,000 excess

  • Minimum Retained Premium for this Product is 25%.

  • Commission payable is 15%.

  • Policy fee is $35 (non-refundable).

  • *Custom quotes available for underlying minimums less than $25,000, and for Strata deductibles up to $1,000,000.

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  • Commercial Strata Units - Self-Quote & Bind maximum limit** of excess coverage is $200,000.

    • $25,000 self insured retention up to $75,000 excess

    • $50,000 self insured retention up to $200,000 excess

    • $75,000 self insured retention up to $175,000 excess

    • $100,000 self insured retention up to $150,000 excess

  • Minimum Retained Premium for this Product is 25%.

  • Commission payable is 15%.

  • Policy fee is $35 (non-refundable).

  • **Custom quotes available for Self Insured Retention less than $25,000, and for Strata deductibles up to $650,000.

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  • Residential Custom Quote:

    1. ​Log into the deductible buydown website.

    2. Click on Application, select Residential, and fill out the application accurately and completely.

    3. When you get to “Amount of Condominium Deductible Assessment Coverage Provided by the Unit Owners Policy”, click the arrow and from the drop-down list, select “Custom Amount”, then, type in the owner’s policy limit.

    4. In the line for “The Greater of the Strata Corporations Water Damage Deductible or All Loss Deductible”,
      type in the Strata Corp Deductible amount.

    5. Do not enter the amount of excess coverage you want. The system calculates the amount based on the
      limits entered above.

    6. When the application is completed and accurate, click “Get A Quote” and you will receive a quote within one
      business day of submission.

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  • For a Commercial Custom Quote complete the Commercial Application as follows:

    1. ​Log into the deductible buydown website.

    2. Click on Application, select Commercial, and fill out the application accurately and completely.

    3. When you get to “Self Insured Retention Amount”, click the arrow and from the drop-down list, select “Custom Amount”, then, type in the amount of Self Retained Insurance the owner has agreed to.

    4. In the line for “Strata Corporations Water Damage Deductible”, type in the Strata Corp’s Deductible amount.

    5. Do not enter the amount of excess coverage you want. The system calculates the amount based on the limits entered above.

    6. When the application is completed and accurate, click “Get A Quote” and you will receive a quote within one business day of submission.

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Policy Coverage

  • This policy supplements coverage for water damage or sewer backup (and fire* if added) when the unit owner’s primary condo policy doesn't fully cover the Strata Corporation’s deductible.

  • Coverage applies when a loss from a covered peril originates within the insured unit, damages common strata property, and the owner is responsible for paying the strata’s deductible.

  • Fire coverage is not offered as a standalone product but can be added to our base policy, which includes water damage and sewer backup. The coverage limit for fire matches the limit for water damage and sewer backup, even if the Strata’s “All Risk” deductible is less.

  • This policy excludes coverage for damages caused by earthquakes, floods, or wildfires, as these events originate outside the insured unit.

Policy & Billing Process

  • To bind coverage and generate a policy, click on the “I Accept” button at the bottom of the online quote application document.

  • A complete policy is generated which you can download and send to the Insured.

  • Please note that you cannot backdate coverage. Therefore you must ensure that you generate the policy documents before the effective date of coverage.

  • All policies issued and effective during the month will be shown on your agency’s monthly billing statement issued by Chutter Underwriting Services.

Cancellation Policy

  • Cancellation requests must be submitted by email to deductiblebuydown@chutteruw.com

  • If a policy is bound but cancelled before its effective date, it can be flat cancelled without any minimum retained premium or policy fee. If documents have been released to the insured, a Release of Interest is required for flat cancellation.

  • If an insured receives late notice of a strata deductible limit decrease before the effective date of a bound policy and no longer needs coverage, the policy can be flat cancelled.

  • For policies issued prior to March 18, 2024, a 100% minimum retained premium will apply upon cancellation.

  • If strata deductibles increase or decrease mid-term and a replacement policy is purchased, the original policy can be pro-rata cancelled. In this case, the stated minimum retained premium does not apply.

Renewal Process

An automated renewal notification is emailed to the individual who created the original policy 45, 14, and 7 days before renewal. 

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When the renewal notice is received:

  1. Search for your policy by entering the last five digits of the policy number (CSD-012345)

  2. Click on the renew button next to the policy and a pre-filled application will open.

  3. Carefully check the information and make any necessary updates/changes.

  4. Once review/revisions are completed, click “I accept” to generate a renewal quote.

  5. Download and email the quote to your customer for review and approval.

  6. If approved for binding, go back to the quote on the website, click on the PDF Icon, then click “Bind Policy”. IF THE QUOTE IS NOT BOUND, THERE IS NO POLICY IN EFFECT.

  7. Download and issue the new policy to your client.

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NOTE: Renewed polices are issued with a NEW POLICY NUMBER. You must update your clientfile with the new policy number at each renewal.

Policy Amendments

Automated policy amendments for mailing address change or primary policy update.

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  1. Navigate to Your Policies:

    • Search for your policy by entering the last five digits of the policy number (e.g., CSD-012345).

  2. Initiate the Amendment:

    • Click the “Change” button to open a new, pre-populated application using details from the original policy.

  3. Update Information:

    • Carefully review all the information, make your changes, and click “I Accept” to submit the amendment. A warning will alert you to confirm if you wish to continue.

  4. Post-Update Actions:

    • If you change the mailing address, download the updated policy declaration page and send it to your client to replace the first page of their policy.

    • Changes to the primary policy information do not affect the policy document.

Amendments

Policy Endorsements

Automated Endorsements for Mid-term Limit Changes (with replacement policy purchase, original policy pro-rata cancelled)

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  1. Navigate to your policies:

    • Search for your policy by entering the last five digits of the policy number (CSD-012345).

  2. Initiate the Endorsement:

    • Click the “Endorse” button to open a new, pre-populated application using details from the original policy.

  3. Update policy information:

    • Review all the information, change limits as needed, and click “I Accept” to create an endorsement quote. 

  4. Review and Submit:

    • Check the quote document for accuracy and click “Bind Policy” to submit the endorsement for underwriting review. A confirmation screen will display “Underwriters are reviewing your endorsement request. Please wait for approval”. 

  5. Approval and Download

    • You will receive an email once the endorsement is approved and released. You can then download the new policy from the website.

  6. Return Premium Handling:

    • Any return premium will be credited to your agency in Chutter’s regular month-end billing cycle. It is the responsibility of your agency to refund your client. 

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Note: The cancellation date of the original policy is determined by the effective date of the new policy. The cancellation will be triggered only when the new policy is bound. 

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Endorsements
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Related Policies Feature:

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Clicking the "Related Policies"       button under “View” will open a popup containing renewed, endorsed, and expired policies related to the current policy.

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For Sample Residential Unit Declarations Page and Policy Wordings Click Here.

For Sample Commercial Unit Declarations Page and Policy Wordings Click Here.

Changes and other Requests

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  • For mailing address change or primary policy update, please follow the policy amendment process. Click here for more details

  • For Mid-term limit changes (with replacement policy purchase, original policy pro-rata cancelled) follow the Mid-term Endorsement process. Click here for more details

  • If you lose your password please follow the instructions on our online portal to reset.

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Eligibility Criteria

​For Residential Condominiums: 

  • Available for unit owners living in their unit.

  • Available for seasonal condos which are used solely by the unit owner.

  • Available for units rented to a single family with a signed annual lease.

  • Available to unit owners offering short term rentals (AirBNB, VRBO) of less than 1 year (additional premium applies).  

  • Coverage may be available when there has been a prior water damage loss which originated from the unit within the last 5 years. Complete the loss information section on the application and click on "Get A Quote". Underwriting will review your submission and get back to you within one business day.

  • Available only in BC, Alberta, Saskatchewan, Manitoba and Ontario.

  • Coverage is in excess of the deductible coverage limit indicated on the unit owner’s primary policy. The Chutter policy will only respond once the unit owner’s primary policy limits are exhausted.

  • Minimum $25,000 water deductible assessment coverage required on the unit owners condo policy (see custom quote above).

  • Claims are to be reported immediately when they occur (Claims process below).

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​For Commercial Strata Unit Owners: 

  • Available for all unit owners.

  • Available for units rented to others.

  • Available to unit owners offering short term rentals (AirBNB, VRBO) of less than 1 year (additional premium applies).  

  • Coverage may be available when there has been a prior water damage loss which originated from the unit within the last 5 years. Complete the loss information section on the application and click on "Get A Quote". Underwriting will review your submission and get back to you within one business day.

  • Available only in BC, Alberta, Saskatchewan, Manitoba and Ontario.

  • Coverage is in excess of a self insured retention amount of $25,000. The Chutter policy will only respond once the unit owner’s self insured retention limit is exhausted.

  • Minimum $25,000 water deductible assessment coverage required on the unit owners condo policy (see custom quote above).

  • Claims are to be reported immediately when they occur (Claims process below).

Broker Responsibility 

  • It is the responsibility of the broker to verify the accuracy of all information entered on the application, including the unit owner’s policy information.

  • It is anticipated that the broker providing the Water Damage Deductible Buydown coverage will also be providing the unit owners policy and so will be able to verify and/or provide the required unit owner’s policy information.

  • If the submitting broker does not have direct access, a current copy of the unit owner’s policy must be obtained and kept on file.

  • It is the responsibility of the broker to process renewals accurately and on time. Please act on renewal notices before the expiry date.

Claims Process

If a client has a claim originating from within their unit, please contact Northbridge General Insurance Corporation claim department and cc deductiblebuydown@chutteruw.com .

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Email:           westernclaims@nbfc.com

 

Please include the following information when contacting the claims department:

 

  • Named Insured.

  • Policy Number.

  • Date of loss.

  • Cause of loss (provide as much detail as possible).

  • Contact details for the Strata Corporations Property Manager.

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