Insurance for Condominiums

CONDOMINIUM CORPORATION PROPERTY INSURANCE

Condominiums are required by the Condominium Property Act and their By-laws to place and maintain coverage on all of the Units and Common Property. The Condominium Property Regulations identify the perils for which the Corporation is responsible to insure against and those perils are as follows:

• fire
• leakage from fire protective equipment
• lightning
• smoke
• windstorm
• hail
• explosion of natural, coal or manufactured gas
• water damage cause by flood, (i)water damage caused by sewer back-up or the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system or a domestic appliance that is location within an insured
• Building
• impact by aircraft, spacecraft, watercraft and land vehicles
• riot, vandalism or malicious acts
• any other peril as required in the by-laws.

The Condominium Property Act also states that the Corporations insurance coverage is primary and is the first to respond to a loss.

The Corporation cannot commence subrogation against a unit owner unless damages are from arson, fraud or vehicle impact.

The only thing the Corporation can recover from a unit owner is the amounts up to the deductible portion of an insured loss.  The deductible portion can be up to $50,000.00.  Please ensure that you are covered for this amount through your personal insurance policy to avoid financial hardships.

The Corporation’s insurance does not cover:

1. Condominium Fees paid by the Unit Owners
2. Mortgage Payments
3. Property Taxes
4. Additional Living Expenses (increased cost to Owner to live elsewhere during time that Unit is not able to be occupied)
5. Loss of Rental Income on tenant occupied units
6. Cost to move contents of Owners/Tenants or place in storage
7. Damages to vehicles
8. Unit upgrades that were not originally installed at the time of Construction (This varies per Condominium Corporation, please consult your Bylaws)

All Unit Owners should have Condominium Unit Owners Policies that would provide coverage, for:

1. Full replacement cost of their Contents (Personal Property)
2. Full replacement cost of Betterment’s and Improvements to the Unit
3. Additional Living Expense to live elsewhere until unit is repaired
4. Coverage for the Corporations’ insurance deductible

All Tenants’ (not Owners) should have Tenant’s Policies that would provide coverage for:

1. Full replacement of their Contents (Personal Property)
2. Additional Living Expense to live elsewhere until unit is repaired or to relocate permanently
3. Liability coverage for damages caused by their negligent acts to Units and/or Common Property