Wednesday May 07, 2025
What is Alberta condo insurance?
There are two main types of Alberta condo insurance: unit owner insurance and condo corporation insurance.Unit owner insurance is purchased by the individual unit owner and may protect personal belongings, interior unit improvements, and personal liability. Condo corporation insurance is typically arranged by the board and may cover common property, structural elements, and shared liability. In this article, we’ll outline Alberta condo insurance for unit owners and explain how to find the right coverage.
This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.Is condo insurance mandatory in Alberta?
Individual unit owners are generally not required by Alberta law to carry their own insurance policy, but many lenders won’t approve a mortgage without proof of insurance, and many condo corporations include it as a condition in their bylaws.Beyond lender requirements, carrying personal Alberta condo insurance as an owner can help pay for repairs to your unit, replace damaged belongings, and cover legal or medical expenses if someone is injured in your home.
What does Alberta condo insurance cover?
Alberta condo insurance for unit owners may cover:- Personal belongings: Items like electronics, clothing, and furniture
- Unit improvements: Upgrades beyond the standard unit description
- Loss assessment: Your share of a claim related to shared property
- Loss of use: Temporary accommodations while your unit is being repaired
- Personal liability: Injury or damage claims related to your unit
What is the Standard Insurable Unit Description (SIUD)?
The SIUD is a document that outlines what parts of a condo unit are covered under the condo corporation's master insurance policy and which parts are the unit owner’s responsibility. Upgrades or improvements beyond what is listed in the SIUD are typically the responsibility of the unit owner to insure. For example, if the SIUD includes laminate flooring and you upgrade to hardwood, you would typically need to cover this through your personal insurance policy.Boards are required to maintain a current SIUD, and owners may request a copy to understand what they are personally responsible for insuring. Reviewing the SIUD can also help avoid potential gaps in coverage and confusion during a claim.
Alberta condo insurance deductibles explained
An Alberta condo insurance deductible is the amount of money you must pay out of pocket before your insurance policy pays for a covered loss. Deductibles are present in both unit owner policies and condo corporation master policies.If a claim originates in a unit (such as a water leak from an appliance that causes damage to another unit or to common property), the condo corporation may have the right to pursue recovery of its deductible from that unit owner. This is why unit owners are commonly encouraged to carry deductible assessment coverage as part of their personal policy.
What does Alberta condo insurance NOT cover?
Alberta condo insurance typically does not cover damage due to poor maintenance, pest infestations, or certain types of natural disasters unless specifically endorsed. These policies typically exclude:- Overland water flooding (e.g., from rivers or heavy rain) unless optional flood coverage is added
- Damage caused by negligence or ongoing maintenance issues like mold or slow leaks
- Wear and tear or gradual deterioration
- Construction defects or major structural issues
- Business operations conducted from within a residential unit, unless commercial endorsements are added
Is renters insurance required in Alberta condos?
Renters insurance is not legally required by the province of Alberta, but it is often required by landlords or outlined in a lease agreement, especially within condominium communities. While not mandated by law, a renters insurance policy can provide critical coverage. Your landlord’s insurance may cover the unit itself, but it does not typically protect your personal belongings or provide liability coverage for incidents that occur within the space you rent.What does renters insurance cover in an Alberta condo?
Renters insurance can provide coverage for the day-to-day risks of tenants in a condo unit. This may include:- Contents coverage: This can help pay to repair or replace your belongings if they’re damaged by a covered event. Items like electronics, furniture, clothing, and kitchen appliances are commonly included.
- Additional living expenses: If your condo unit becomes uninhabitable due to an insured event, your renters insurance may help cover the cost of temporary accommodations, along with meals and other essential living expenses.
- Personal liability coverage: This can help protect you if you’re found legally responsible for unintentional damage to someone else’s property or if someone is injured in your unit. For example, if your dog accidentally bites a visitor or your overflowing bathtub damages the unit below, this part of the policy may help with legal fees and related costs.
How FirstService Residential can help
Navigating condo insurance can be complex, but you don’t have to do it alone. As Alberta’s largest condominium management company, FirstService Residential has the scale, relationships, and local insights to help your board make informed decisions about insurance coverage. Here’s how we can help:- Coordinating required replacement cost appraisals
- Working closely with underwriters to secure coverage that aligns with your community’s budget and risk tolerance
- Assisting in processing insurance claims quickly and efficiently
- Keeping your board up to date on insurance requirements in your bylaws and Alberta’s Condominium Property Act
- Helping to identify potential coverage gaps between the corporation’s policy and owner responsibilities