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Alberta condo owners could be on the hook for up to $50,000 in deductible costs

Did you know that condominium corporations will now be able to seek recovery of the deductible portion of the corporation’s insurance claim — up to a maximum of $50,000 — from a condo owner for any damage that originates in their suite or private area?

New rules that came into effect January 1, 2020 mean Alberta condo owners could be on the hook for upwards of $50,000 if damage is caused within their unit - NO MATTER WHAT YOUR CONDO BY-LAWS say according to various media reports.

“That means that if something happens in the unit and it’s not your fault — the toilet explodes, there’s water loss, water damage goes through to the floors below — and there’s a $50,000 deductible or a $25,000 deductible, the owners are now responsible for the deductible,” Todd Shipley, of Reynolds Mirth Richards & Farmer LLP, explained at a recent Canadian Condominium Institute educational event.


Todd Shipley on Insurance Deductibles for Condominiums



As a Condo owner in Alberta there are three important things you need to do to ensure you have proper coverage:

  1. Ensure you have a unit owner’s insurance policy
  2. If you have a unit owner’s policy, make sure you have deductible coverage. If you do not, ask your insurance rep to have it added to your coverage.
  3. Ask your condo board, manager or corporation for a copy of the corporation’s certificate of insurance that outlines the current deductible amounts, specifically for water damage and ensure the deductible coverage is at least that amount

What does this mean? For example if you have $10,000 worth of coverage from your insurance provider and a $50,000 water deductible from the Condo Building insurance policy is due by you... you could have a serious problem... up to the tune of $40,000,” Shipley of of Reynolds Mirth Richards & Farmer LLP says.

Inform your insurance agent today about the changes that were made under Section 62.4 of the Condominium Property Regulations on January 1, 2020.