Condominium Property Insurance Changes


As you may have heard, new rules came into effect January 1, 2020 that could have a huge impact on condominium unit owners.

The Government of Alberta made changes to the Condominium Property Act, which allows condo corporations to seek recovery of the deductible portion of the corporation’s insurance claim, up to a maximum of $50,000, from a condo owner for any damage that originates from their unit. This can occur even if the unit owner is found not to be directly responsible for loss.


What does this mean?

It means if something happens in your unit, such as a water damage loss from a leaking toilet, you as the unit owner could now be held responsible for the condo corporation’s deductible.  Under the new legislation, the maximum amount that you could be liable for is $50,000.

What are your options?

The majority of insurance companies automatically include a limit of $25,000 in their comprehensive condominium policy wordings. As well, many insurance companies provide you with the option to increase this limit for an additional premium. 

We recommend checking with your condominium corporation to determine if they have updated their terms in response to the new legislation and determine what limit of coverage is required.

Our Team will be reaching out to our condominium insurance clients in the near future to discuss limits of coverage and options. In the meantime, please do not hesitate to reach out to us if you have any questions or concerns regarding your condominium insurance policy.

Thank you,

The Costen Insurance Team