Condo claim guide (excluding Quebec)
We are here to help you recover and support you every step of the way following an incident involving your condo.
A condo unit insurance claim can be complex because there are often multiple parties and types of insurance involved. How the condo is built and the way it splits into common property and individual units varies by building type and can also affect how a claim is handled.
This guide provides an overview of what you can expect during the claim process, and outlines your responsibilities and ours. Every condo claim is different and your claims adjuster will help guide you through the process.
First steps
When you report a claim, helping you recover is our top priority. Your claims adjuster will need to know:
- If your unit has been damaged and the source of the damage within your unit.
- A description of the damage. It may be necessary to specify if the damaged areas were part of the original standard unit or if improvements had been made.
- Whether other units or common property are affected in your condo building.
- The type of condo building you are in. For example, is it an apartment building or a townhouse?
- Whether the condo corporation has filed an insurance claim.
- Contact information for any property manager, representative, or claims adjuster for the condo corporation.
Required documentation
To help us determine next steps and how coverage will apply, your claims adjuster will ask you to provide:
- A copy of your condo bylaws and rules
- The standard unit description
- The Declaration page of the condo corporation’s insurance policy
As the unit owner and member of the condo corporation, it is your responsibility to get these documents and provide them to your claims adjuster. If your condo doesn’t have bylaws or a standard unit definition, work with your claims adjuster to determine how your policy would cover the repair, keeping in mind there may be limitations, conditions, or exceptions to your policy coverage.
The role of the condo corporation and their adjuster or agent
In jurisdictions where the condo corporation is required to be involved in repairs, let them know about the damage, even if it only affects your unit. As an owner in the condo corporation, you have a right to make a claim to the corporation’s insurance company and get help from your condo board. If the condo board has a property manager, agent, or an adjuster, involve them too. Involving the right people will make the claims process smoother.
Policy considerations
Your Condo Unit Owner Policy provides coverage for damage to your unit improvements and personal property, as well as additional living expenses and rental income losses you may incur. Your claims adjuster can explain your coverages and any relevant limitations, conditions, or exceptions.
The following coverages are important in processing your claim. Please review your policy for exact details and connect with your claims adjuster for any questions.
- Condominium Deductible Coverage
- Condominium Unit Owner Improvements Coverage
- Collectively Owned Condominium Property Coverage
- Condominium Unit Coverage
Terms to know:
These terms are often used in condo policies and claims.
Bareland
‘Bareland’ or ‘bare bones’ describes situations where the condo lot or unit is provided as a ‘blank slate’, putting responsibility for all components (including the original structure and finishes) on the individual owner.
Bylaws and Rules
Bylaws serve as administrative guidelines for condo corporations. They cover a wide range of matters related to property governance, including the control, management, maintenance and use of units and common property. They also outline how the condo board carries out its duties. Rules govern specific aspects of condo living, such as the use, safety, and condition of common property and assets, but not individual units.
Common property and limited common property
Property and/or space shared by all members of the corporation, such as the lobby, elevators, common hallways, and the exterior of the building. Provincial legislation requires the corporation to maintain insurance on common property, common assets and buildings shown on the original plan, and may include fixtures built or installed in a unit as part of the original construction. However, the responsibility for repairing or maintaining these items may differ depending on the regional legislation.
Condo corporation
Condo corporation refers to the legal entity representing the owners as a whole and is to be considered a separate entity from individuals. Other similar terms include strata corporation (BC) and condo syndicate (QC).
Condo board
Condo board refers to the group of owners (directors and officers) that make decisions on behalf of the owners in the corporation. Other similar terms include strata council and condo association.
Condo insurance policy declaration
Condo insurance policy declaration refers to the corporation’s insurance declaration page or certificate of insurance.
Deductibles
A deductible is an amount of money an individual or corporation pays to cover a portion of the damages when an insurance claim is filed. You have a deductible on your condo insurance policy. The condo corporation also has a deductible that applies to their insurance policy. Water damage often has a separate deductible. Where the bylaws and the governing provincial legislation permit, a condo corporation may charge an individual unit owner to pay for the condo corporation’s deductible, even in a situation where the unit owner is not negligent or legally liable for the damages.
Standard unit description
‘Standard unit description’ refers to the description of finishes and fixtures provided with a unit based on the original construction. Limited common property may be included in this description. In some regions it may also be required to specify the parties accountable for each component. In Alberta this is known as the ‘standard insurable unit description’ and in Quebec it is called the ‘description of private portions’.
‘Unit’ refers to the individual condo unit or strata lot which the member or a third party occupies or for which they have sole use and responsibility.
Standard finishes
The standard fixtures and finishes that were installed at the time the condo was built would be considered original to the building, such as wall coverings and flooring, plumbing and electrical. However, the unit owner may be required to take responsibility for repairs to these depending on the legislation of the region.
Unit owner improvements
Improvements to the unit made or paid for by you are covered subject to the policy limitations and conditions. For example, if you or the previous owner upgraded the flooring or the kitchen cabinets since the building was built, the upgraded value would be considered an improvement.
FAQs
A pipe burst in my unit and caused water damage to the unit below. Who will pay for the damages?
The damage to your personal property or unit improvements will be covered under your policy. Depending on the loss location, damage to the standard unit may also be covered. The owner of the unit below should report any damage to the condo board and their own insurer. In some circumstances, you may be charged the condo's deductible which is covered under your policy.
My washing machine hose came loose, and I had no damage in my unit, but the unit below was damaged. The condo corporation wants me to arrange repairs. Am I obligated to do this?
No. You are not responsible for arranging repairs to another owner’s unit; they should contact their own insurer. If the condo corporation arranges repairs and charges you for an amount up to corporation’s insurance deductible, we will pay up to the limit shown in your policy declaration as long it is a valid assessment under the condo bylaws.
I accidentally left the water running and the bathtub overflowed, causing water damage to the unit below. What will my policy cover?
In this case, you could be held legally responsible for the damage.
If there is damage to your unit, your policy covers your contents, unit improvements, and loss of use, if required. It may also pay for an assessment of the condo corporation’s deductible up to the limit shown on your Declaration page as long as it is a valid assessment under the condo bylaws.
Under your Legal Liability coverage, we may pay for contents, unit improvements and loss of use to the owner of the unit below. These claims are usually presented by their insurer, as we would not undertake repairs directly.
Customer service standards
Your claims adjuster is here to help you and provide guidance about your claim and policy coverage, so please reach out if you have any questions.
We aim to provide excellent service and support to all of our members. Our goal is to respond to you as soon as possible throughout your claim experience. Claim volumes vary significantly with severe weather, affecting our response times. In these cases, your patience is appreciated.