Any insurance topic such as claims, premiums, deductibles, etc.

This topic contains 3 replies, has 2 voices, and was last updated by  Dawn Mitchell 3 months, 1 week ago.

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  • #3265

    Terry Gray

    Would appreciate some help on this puzzle if there is someone who can speak decisively to this.

    We have had some damage to private property within two units in a carriage/coach home style condo. Although there is no common property involved, we are advised that the Corporation should file the claim under our policy and then recover from the negligent owner afterwards. This doesn’t make sense to us since, as we understand it, any claim on our policy will result in premium increases when we renew, and that unfairly disadvantages all our owners. Is it really incumbent on the Board to become involved like this in such private incidents when (once again) there is no common property involved?

  • #3371

    Dawn Mitchell

    To give a proper answer would need to review bylaws and current coverage.

    If this is a conventional condominium (and I suspect that it is), the Corporation is required to repair any insured property if the damage is due to an insured peril. Then, if the bylaws allow, they can collect the deductible back from the Unit Owner. This is the maximum amount an Owner can be held responsible for.

    Section 47 (1) (a) of the Act places the responsibility to insure Units and Common Property on the Condominium Corporation.
    Section 47 (6) indicates that any coverage placed by the Corporation is the first policy to respond and any coverage placed by the Owner of a Unit is deemed to be excess coverage.

    Please remember, the insurance policy is purchased by the Corporation for the protection of the members of the Corporation. As a Unit Owner is a member – and contributes to the insurance premium by way of their contributions – they are entitled to the protection of the policy.

    Should a Corporation not want to put a claim through – and they are certainly entitled to that option – it does not alleviate them of the responsibility of repair.

    Hope this is of some assistance.
    Dawn Mitchell, FCIP, CRM, CAIB, ACCI
    Hub International.

  • #3376

    Terry Gray

    Thank you for that. I go to your second sentence, “the Corporation is required to repair any insured property.” There is no damage to “insured property” (i.e. common property), but only to private property within the units, which is why this is confusing… Thanks.

  • #3377

    Dawn Mitchell

    Hi Terry, for a non bareland Condominium, as per Section 47 (1)(a) of the Act, the Corporation must place and maintain property coverage on the Units and the Common Property. For example, should there be a fire in a unit, which damages counters, walls, floors, and stove, the Corporations policy would respond to repair the damages to everything EXCEPT the stove.

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