The Corporation’s Insurer is responsible for making certain that the requirements of Section 47 of the Condominium Property Act, RSA 2020 of Alberta, and Section 61 of the Regulation to the Condominium Property Act and the Corporation’s registered bylaws are being met (N.B. The Bylaws cannot conflict with the Act).
For many Condominium Corporations, the Bylaws outline the insurance coverage requirements and public liability for both owners and the Condominium Corporation. It is important to note that an owner must ensure they obtain "CONDO OWNER INSURANCE" for their personal property (including appliances) and may wish to obtain coverage for betterments & improvements, as well as include liability insurance of their own.
NOTE: If damage for a condominium corporation’s insurance claim originates in or from an owner’s unit (or owner’s exclusive possession area), then the condominium corporation can claim back an insurance deductible from the owner, up to a maximum of $50,000. In such a situation, the owner is “absolutely liable” to the corporation on demand by the corporation. This means that whether or not there was any proven negligence, the owner is liable for the corporation’s deductible.
• Some insurance companies offer owners deductible coverage that will help pay for the corporation’s deductible. Check with your insurance representative to discuss this type of coverage. It is prudent to request to add this coverage.
• For more info, check out this link: https://newconceptmanagement.com/wp-content/uploads/2020/03/Condo-Insurance-Mar-2020.pdf
• This optional coverage may be called something like “special assessment due to an insurable loss coverage”, depending upon the insurer.
Older condominium insurance policies had water damage deductible at $10,000.00 and may not have yet raised their deductible. I understand that water damage claims are one of the most frequent insurance claims for condominium corporations. Like a unit owner’s tub, toilet, washing machine or dishwasher overflowing. My daughter’s condo building required her to update all connection lines for the washing machine, toilet and dishwasher to braided, stainless steel hoses to help reduce the risk. This was an inexpensive and easy task for most unit owners.