“When Your Upgrades Aren’t Covered: Understanding Betterments and Insurance Coverage in Strata Homes”

Dan Wilson
Nov 7
3 min read

Most strata owners don’t realize that their renovations aren’t covered under the strata’s insurance policy. Learn how a professional replacement cost analysis ensures your upgraded finishes and fixtures are properly insured.

1. A Real Story We See Often

A client recently purchased a patio home in a Vancouver Island strata community. After moving in, they invested heavily in upgrades -new flooring, cabinetry, quartz counters, lighting, appliances, and even an upgraded heating system. When we were asked to complete a replacement cost analysis of their upgraded interior, one question stood out:

Would their insurance actually cover the full cost to rebuild those improvements in the event of a major loss?

In most cases, the answer is no - unless the homeowner takes specific action.

2. The Strata Insurance Divide

In British Columbia, strata insurance rules are clearly defined—but not always clearly understood.

Under Section 149(1) of the Strata Property Act,

“The strata corporation must obtain and maintain property insurance on (a) common property, (b) common assets, (c) buildings shown on the strata plan, and (d) fixtures built or installed on a strata lot, if the fixtures are built or installed by the owner developer as part of the original construction on the strata lot.” (Strata Property Act, s.149(1))

The Province of BC clarifies this further:

“The strata corporation’s property insurance is for common property, common assets, buildings shown on the strata plan and fixtures built or installed on a strata lot if built or installed by the owner-developer as part of the original construction of the strata lot.” - Province of BC, Strata Housing: Finances and Insurance

In simple terms: the strata’s policy restores the original builder specifications—not the improvements you’ve made since.

3. What Counts as “Betterments and Improvements”?

The Condominium Home Owners Association of BC (CHOA) defines it clearly:

“Betterments and alterations to a strata lot made by an owner … are specifically excluded from coverage under all strata corporations’ insurance policies. The unit owner’s personal insurance policy provides coverage for these items.” - CHOA, Home Owner & Landlord Insurance Policies

These can include:

Upgraded flooring (hardwood or tile replacing carpet)
Quartz or granite countertops
New cabinetry or fixtures
Custom lighting or built-in millwork
Ductless heat pumps or new mechanical systems

Every one of these upgrades increases your individual replacement cost, but unless they’re declared and insured, they remain uninsured.

4. The Risk After a Loss

Imagine a fire or flood that damages your home. The strata’s insurance will rebuild to original construction standards. But if you’ve added $80,000 worth of upgrades over the years, that value is on you- unless your unit owner’s policy includes betterments and improvements coverage.

CHOA warns that:

“Many unit owners spend considerable money making the unit their own … The unit owner’s personal insurance policy provides coverage for these items, which are specifically excluded from coverage under all strata corporations’ insurance policies.” - CHOA, The Importance of Unit Owners’ Personal Insurance

Even moderate upgrades can create five- or six-figure gaps between insured and actual replacement value.

5. How a Replacement Cost Analysis Protects You

A professional replacement cost analysis provides an independent valuation of your unit’s upgraded interior finishes and systems. Our process typically includes:

A detailed site inspection and documentation of all upgraded components
Cost estimation using current, local construction data
A clear report identifying the replacement cost of your improvements

This analysis ensures your insurance reflects the real cost to rebuild your home as it exists today - not as it was built years ago.

6. When to Request a Replacement Cost Analysis

Consider having this analysis completed:

After completing major renovations or upgrades
When purchasing a previously renovated strata unit
Before renewing your unit owner’s insurance policy

It’s also a valuable complement to your strata corporation’s insurance appraisal, ensuring both the building and individual units are accurately insured.

7. Peace of Mind Through Precision

Insurance is about managing risk. Knowing exactly what your home would cost to rebuild- and ensuring your policy matches that cost - is a key step in protecting your investment.

If you’ve renovated your strata unit, or purchased one that’s been upgraded, now is the time to verify that your insurance reflects those changes.