Insurance Coverage: What Is Covered by Who

As a condominium Unit Owner, you are a part owner of a Condominium Corporation. The insurance obtained by the Condominium Corporation is regulated by the Alberta Condominium Property Act and Regulations, and the By-Laws of the Corporation.

The standard Condominium Corporation is required to cover all of the insurable property of the Corporation both real and personal, all of the units and in most cases unit owner improvements and betterments.

What does this mean? The standard Condominium Corporation insurance policy covers all interior and exterior structural and all common property. This includes ceilings, walls and floors within your unit, subject to the definitions, exclusions and deductible in the Corporation Policy.

• Loss to personal belongings
  This includes such items as clothing, furniture, electronics, appliances, etc.
• Additional living expenses
  If your unit is unfit for occupancy due to an insured loss, or you must move out for insured repairs to be completed.
• Personal liability
  You could be held legally liable for causing bodily injury or property damage to a third party because of your personal actions anywhere in the world, or as a result of the use, occupancy or ownership of the premises you own or reside in.

The above items may be covered by your Unit Owner policy; make sure you’re familiar with what your policy covers.

If there is damage to your unit, other units or common property caused by an insured peril, such as smoke, fire or water, the Condominium Corporation Insurance Policy will respond first. Your Unit Owner’s policy will respond for damage to your personal belongings, alternate living accommodations, or if you are required to pay the Condo Corporation’s deductible.

Legislation tells us that the Condominium Corporation cannot recover monies paid out under the Corporation’s Policy from the Unit Owner, however, depending on your By-Laws, the Board may assess the Corporation’s deductible back to the Unit Owner.

If there is damage to your unit, other units or common property and damage is the result of an Owner, family, friend or uninsured contractor doing work (e.g. repairs, renovations and installs), the Condominium Corporation policy will respond first to pay for damages, subject to policy conditions and the Corporation’s deductible. This will affect the Condominium Corporation’s insurance claims history, and may result in increased premiums and/or deductibles.