The Alberta government changed the Condominium act which became law in Jan 2020. If you own your condo there are a few key points that you need to know.
Insurance: Effective Jan. 1, 2020, condominium corporations will be able 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 in their suite or private area.
“That means that if something happens in the unit and it’s not your fault — the toilet explodes, there’s water loss, water damage goes through to the floors below — and there’s a $50,000 deductible or a $25,000 deductible, the owners are now responsible for the deductible,”
Why this is critical now is that insurance rates for Condo Corporations has skyrocketed and so many boards are increasing their deductible.
Recommended Action
- Find out from your condo board what their insurance deductible is
- Call your insurance company and make sure your personal policy covers paying the condo boards deductible if something happens.
Insurance tip: When talking to your insurance company also make sure your policy covers any renovations that have been done to your unit as the standard insurance policy normally covers only original finishing.
Condominium Documents
The other large change is that the government has put a cap on the cost for owners to obtain documents. This only becomes relevant when you go to sell but at that time it will save you some money.