All Condo Owners Need Deductible Insurance
Due to the major change to condo legislation that occurred in January 2020, Alberta condo owners need to be aware and ensure to contact their broker or provider of that change.
This significant change allows condominium corporations to require owners to pay the entire building’s deductible amount for claims where any damage can be proven to have occurred in a suite or private area – including storage units or an owned parking spot.
What this means for condo owners is that any kind of damage or repair costs incurred – of up to $50,000 – must be covered by the owner. Examples of these situations are as follows:
– Leaky toilets that cause water damage to the building structure or another unit
– Fire that starts on your balcony and spreads to other units
These scenarios also apply regardless of whether or not tenants are negligent. This law only takes into consideration where the incident started.
It’s very important that condo owners are covered by insurance to avoid hefty fines and costs. It’s worth looking at a condo insurance policy and ensure the following:
- It has deductible insurance
- And it can cover up to $50,000 of coverage.
The Protection Provides Peace Of Mind
Including those additional parts to a condo insurance policy won’t add much to the overall cost. When something does happen to a unit, the tenant would pay the amount of their personal deductible to enact the deductible insurance for the building.
Beyond that, it’s important to ask for the condominium corporation’s current certificate of insurance to ensure the deductible insurance covers the building’s amount. Because the condo legislation says a maximum charge is $50,000, having a policy that includes at least that amount is important.
How Condo Insurance Works
Why this change is so significant for condo owners is that personal condo insurance policies are simple in their coverages. They normally include coverage for personal property inside the condo and storage locker and some may include coverage against water damage and insurance-related special assessments. With this law enacted, it’s important to include those two new factors.
At the same time, the building will also be carrying its own policy which would cover the following:
- Common areas
- And building envelopes against loss resulting from a named peril
Part of the monthly condo fees that condo owners pay go towards the policy of the building. The fees also cover building upkeep and maintenance. Condos in Alberta also include water in their condo fees and some also include other amenities like heat and electricity.
Those costs are all calculated based on the size of the unit. Keep in mind the age of the building will play a factor as the older it is, the higher the costs.
Increasing condo fees aren’t always a bad sign but rather hopefully the condo Board is saving revenues for future repairs and upgrades.
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