Responsibility for the Deductible on the Corporation’s Property Insurance Policy
Modified from an article posted by James M. Davidson and published with permission from James Davidson (Nelligan O’Brien Payne).
Insured Damage (i.e. Damage covered by the Corporation’s Insurance) – Responsibility for Deductible on Corporation’s Insurance Policy
A. Proof of Negligence
| Owner or tenant negligently causes damage to his or her own unit. | Unit owner responsible per Section 105 (2) of The Act. |
| Owner or tenant negligently causes damage to other units or the common elements. | Our Bylaw #7 says owner normally responsible. |
| A resident’s family member, visitor or agent/contractor negligently causes damage to any part of property. | Our Bylaw #7 says owner normally responsible. |
| Condo Corporation negligently causes damage. | Condo Corporation responsible. |
B. No Proof of Negligence
| Damage to owner’s unit from source within unit. | Our Bylaw #7 says owner normally responsible. |
| Damage to owner’s unit from source outside unit. | Our Bylaw #7 may say owner responsible. |
| Damage to other units or common elements from a source within one unit (the “source unit”). | Our Bylaw #7 can say owner of “source unit” responsible. [Note: Owner’s liability insurance might not provide coverage because no proof of negligence.] |
Notes
- The foregoing only applies to damage which is “insured damage” under the condominium corporation’s insurance policy. In the case of insured damage, the corporation’s insurance covers all damage to the common elements and standard units (beyond the deductible). [Or, if the corporation decides not to make an insurance claim, the corporation must pay any amount that would have been paid by the insurer if a claim had been made.] The question then is: Who is responsible for the deductible portion of the loss? The above chart is directed at this question.
- The corporation’s insurance does not cover damage to any features beyond the standard unit (i.e. damage to “unit improvements”). You must ensure you have your own insurance that covers your personal possessions and any improvements that have been made to your unit. This is actually required under Bylaw #7, Article II (5).
- In the case of uninsured damage, the normal repair and maintenance responsibilities, set out in the Act and Declaration, apply. However, there may be basis for claim against any party who has caused the damage through an act or omission.
- Frobisher Place has an insurance bylaw you may wish to consult.
- You may be responsible for your personal insurance’s deductible, irrespective of who caused the damage.
- This article is intended for guidance only. We held a town hall with Jim Davidson on July 29, 2013 to discuss insurance further.