Strata corporations are offloading the expense of huge building insurance deductibles onto individual suite owners in the event of a big claim, a disturbing new trend that watchdogs say needs to change.  

Water damage is the number one reason strata owners make an insurance claim, so some strata corporations are now lowering their insurance costs by increasing their deductibles and forcing individual condo owners to pick up the cost.

Tony Gioventu, executive director of the Condominium Home Owners' Association of B.C., says the combination of water and gravity can be an owner’s worst nightmare if they have a flood in their unit.  

"What ends up happening is we'll have six or 10 or 18 units damaged all at once and it becomes a substantial claim,” he told CTV’s Steele on Your Side.

Gioventu said in certain buildings, especially if they’re prone to flooding and water damage, the deductible can be $100,000 or more.  

At least one Vancouver condo building, rumoured to be in Coal Harbour, has a insurance deductible for flooding as high as $250,000.  So if a flood happens in your suite that causes damage to others you personally are on the hook for a quarter million dollars.

"It's a terrifying shock,” said Gioventu. “It could likely mean you lose your unit."

Most deductibles for claims made by the strata used to be in the $10,000 range, but in the past few years the dollar amount has been increasing.  

The Insurance Bureau of Canada wants the province to change the rules to prevent stratas from downloading insurance costs onto individual condo owners.  

Vice President Lindsay Olson said condo owners can protect themselves by talking to their strata corporation about its insurance deductible.  

"You do need to ask questions to find out if there is a bylaw that's going to transfer that responsibility to you whether it's your fault or not,” she said.  

The housing minister declined CTV’s request for an interview, but Rich Coleman’s office told us that insurance deductibles are not regulated by the Strata Property Act in B.C., and the province has no plans to change that.

Potential condo buyers should insist on seeing a copy of the strata's insurance policy before making a deal, and be diligent on knowing whether the strata has changed the rules.  The deductible can change annually.  

Investors should also choose their tenants very carefully, because the owner is responsible in the event of a claim – not the tenant.  

Condo owners can buy extra insurance to protect themselves, depending on the size of your building’s deductible.  

Some insurance companies will let you buy insurance to bridge the gap, but only if the strata's deductible is under $50,000. Anything higher than that and you're on your own in the event of a major damage claim.