As of January 1st 2020, the new Alberta Condo Legislation stipulates that a condominium corporation may recover up to $50,000 of the corporation’s deductible from a condo owner. We wanted to take a pro-active approach to make sure you are correctly informed about this recent change.
Frequently Asked Questions:
Q: What does the new legislation mean for me?
A: Effective January 1st, 2020, condominium corporations will be able to recover the deductible portion of the corporation’s insurance claim [ up to a maximum of $50,000 ] from a condo owner when damage originates in or from the owner’s unit or an exclusive possession area assigned to the owner.
Q: Am I covered for this under the “Loss assessment Coverage”?
A: “Difference in deductible” is different than a “loss assessment” although the two are often confused. An assessment has to be done in accordance with the condo bylaws for a loss to the common property of the building and is assessed equally across all of the condo unit owners.
Example: Windstorm that causes damage to the entire roof of a building. If the insurance is inadequate, they will assess all of the unit owners for the shortfall in coverage to the common property.
However, all of the companies that we represent include a $25,000 “Difference in Deductible” coverage.
Note: On your policy, it may be referred to as Condominium Deductible Assessment, condominium corporation deductible endorsement or loss assessment extension.
Q: Can I purchase higher limits?
A: Yes. Whilst each company is different, a general rule is a cost of $1-$2 per $1,000 of additional coverage required.
Please feel free to contact us should you need to review or amend your limits.