The corporation’s insurance

There are two kinds of insurance. There is insurance in case of fire, flood and other perils and there are the long term contracts with energy re-sellers.

Insurance coverage
A condo corporation has to have insurance. The Act states that the corporation shall obtain and maintain insurance, on its own behalf and on behalf of the owners, for damage to the units and common elements that is caused by major perils or the other perils that the declaration or the by-laws specify.

Major perils means the perils of fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes, riots or civil commotion, impact by aircraft or vehicles, vandalism or malicious acts.

The corporation insurance does not include insurance for damage to improvements made to the units.

Deductible
The insurance policy deductible that limits the amount payable by the insurer shall be a common expense.

Owner’s responsibility
If an owner, a lessee of an owner or a person residing in the owner’s unit with the permission or knowledge of the owner through an act or omission causes damage to the owner’s unit, the amount that is the lesser of the cost of repairing the damage and the deductible limit of the insurance policy obtained by the corporation shall be added to the common expenses payable for the owner’s unit.

Termination
The insurer shall not terminate the insurance contract unless the corporation is given at least 60 days notice by registered mail.

Keep the rates low
There are four things a board can do to reduce the premiums or at least stop them from going up.

1.	Insure that the common elements are kept clean and orderly and that the building is properly maintained. This will reduce the chance of fires and water leaks.
2.	Keep the staircases and walkways in good repair and insure that in the winter season, the walkways are clear of snow and ice.
3.	Increase the insurance deductibles. The higher the deductables, the cheaper the rates.
4.	Pass a standard unit by-law that lists the basics that the corporation insurance will cover.

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