Licensees preparing Depreciation Reports required by the Strata Property Act will not have coverage under the Indemnity Plan for this service. E&O’s view is that the preparation of such reports is not the provision of real estate services and thus falls outside of coverage provided in the Indemnity Plan.
Preparing Depreciation Reports is a highly specialized service and does not require a real estate licence. If you are offering this service to clients, you should purchase separate coverage from an appropriate insurer. It is good practice for strata managers to expressly advise strata corporations to hire only service providers who are properly insured.
