Today the idea of home ownership changing with condominiums becoming common options in Canada’s larger urban centres and increasingly, in smaller communities throughout Alberta as well. According to Service Alberta, a “condominium is a form of real property ownership that has two distinct parts: you own your condominium unit to which you get a title, and you also jointly own common property with the other unit owners in your complex.”
It also means understanding the different levels of insurance required for each of the two distinct parts of ownership. Insurance on the entire structure of the condominium complex is the responsibility of the condominium corporation. This insurance must cover replacement cost value insurance on the property for all perils covered by standard insurance policies, and insurance for any liability incurred by the board or corporation when carrying out their duties and responsibilities.
In Alberta, a condo corporation is required to maintain insurance to protect common property from destruction or damage caused by: fire and/or leakage from fire protective equipment; lightning; smoke; windstorm; hail; explosion of natural, coal, or manufactured gas; water damage caused by flood; water damage caused by sewer back-up or the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system or a domestic appliance that is located within an insured building; impact by aircraft, spacecraft, watercraft, and land vehicles; riot, vandalism or malicious acts; and any other causes as required by the condominium by-laws. Read more