Insurance and deductibles: what must be insured, what owners can be charged, what they are told

Where a building is divided into units, section 47(1)(a) of the Condominium Property Act requires the corporation, subject to the regulations, to insure the units (other than improvements made to the units by the owners) and the common property. The insurance is against the perils the regulations require, which section 61(1) of the Condominium Property Regulation lists.

Section 47(7)(a) of the Act also requires insurance against liability a board member or officer incurs from an action or omission in carrying out their functions and duties, except as a result of a failure to comply with section 28(2). This answer does not deal with every part of section 47 of the Act or of section 61 of the Regulation.

Next step. Read the corporation's insurance certificate against each part of section 47 and ask the insurer about any gap.

Sources: Condominium Property Act, Condominium Property Regulation

Yes, for the insurance that section 47(1) of the Condominium Property Act requires. Section 47(3) says that, in complying with subsection (1), the corporation must place and maintain insurance for replacement cost value. The insurance must provide that, if insured property that is destroyed or damaged is then replaced or repaired, no deduction is made from the settlement for depreciation.

Section 47(3) does not set a dollar amount or require appraisals at a set interval. Section 61.1(2)(a) of the Condominium Property Regulation sets a minimum for residential units, other than a developer's, unless the bylaws require more. It is the replacement value of the units and their fixtures and finishing, as if all units contained the features in the applicable standard insurable unit description.

Next step. Ask the insurer how the replacement value of the corporation's coverage was worked out.

Sources: Condominium Property Act, Condominium Property Regulation

Yes, with one exclusion for flood. Section 61(1)(h) of the Condominium Property Regulation lists water damage caused by flood among the perils a corporation must insure against, but section 61(3) excludes only the flood peril, and only where coverage against it is not available for the property being insured. Section 61(3) does not say who decides availability.

Section 61(1)(i) also lists 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 located within an insured building. Section 61(6) says insurance placed by a corporation is not to be considered inadequate by reason only that it is subject to a limitation, exception, exclusion or restriction that is usual and customarily imposed in the insurance industry or is reasonable in the circumstances. It does not say every exclusion is acceptable.

Next step. Ask the corporation's insurer or lawyer whether the corporation's policy covers the flood peril for your building and, if it does not, why.

Sources: Condominium Property Regulation

Not under section 47(1)(a) of the Condominium Property Act, which, subject to the regulations, requires the corporation to insure the units, other than improvements made to the units by the owners, and the common property. Service Alberta's March 2026 tip sheet says an owner will need to buy their own insurance to cover loss of or damage to personal property, and for personal liability and improvements to the unit.

Section 61.1(2) of the Condominium Property Regulation sets a minimum amount of insurance for section 47(1)(a) unless the bylaws require the corporation to provide additional insurance. If the corporation and an owner both place insurance against loss to the units or the common property, section 47(6) deems the corporation's insurance first loss insurance and the owner's insurance on the same property excess insurance. Whether an owner's policy will pay for a particular loss is a question for the owner's insurer.

Next step. Check the bylaws for any requirement that the corporation provide additional insurance, ask the corporation's insurer or lawyer which items in a unit count as owner improvements, and suggest owners ask their own insurers what their policies pay.

Sources: Condominium Property Act, Owning a Condominium, Condominium Property Regulation

Section 47(7)(a) of the Condominium Property Act requires the corporation to place and maintain insurance against any liability a board member or officer incurs from an action or omission in carrying out their functions and duties. The requirement does not apply to liability that results from a failure to comply with section 28(2) of the Act.

Section 28(2) is each board member's duty to act honestly and in good faith with a view to the best interests of the corporation, and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. This answer deals only with clause (a) of section 47(7) and describes section 28(2) as worded in the consolidation current to 14 May 2026; check the current wording before relying on it.

Next step. Ask the insurer for a plain explanation of the limits and exclusions in the board's liability insurance.

Sources: Condominium Property Act

It is the description of features that section 61.1(2)(a) of the Condominium Property Regulation uses to set the corporation's minimum insurance on residential units other than a developer's: replacement value as if all units contained the features it describes. Section 62.1(1) makes the description for a residential unit an additional matter of which the corporation must give each owner notice in accordance with section 48 of the Act.

Under section 48 the notice is due when the description changes, within 30 days of the date the corporation receives the insurance certificate. The minimum applies unless the bylaws require more. An owner can ask in writing for the current description. Section 20.52(1)(p) of the Regulation prescribes it, subject to subsection (2), for requests under section 44 of the Act, which says the corporation must provide prescribed information or documents within 10 days after receiving the request.

Next step. Ask the corporation's insurer to confirm which standard insurable unit description applies to the corporation's units.

Sources: Condominium Property Regulation, Condominium Property Act

Yes, where the corporation is responsible for insuring the property affected by the damage. Section 62.2(1) of the Condominium Property Regulation says the corporation shall make repairs, or arrange for and supervise repairs, to a unit and the fixtures and finishing in it in that case.

This answer deals only with subsection (1) of section 62.2. The other subsections may affect a particular repair.

Next step. Ask the corporation's lawyer who must repair the damage in a particular case, and have them check the bylaws and the rest of section 62.2.

Sources: Condominium Property Regulation

Section 48 of the Condominium Property Act requires written notice to each owner, with a copy of the insurance certificate reflecting the change, within 30 days of the date the corporation receives the certificate. The notice is due when the amount of the deductible payable in the event of a claim or the replacement value of the coverage changes, when permitted exclusions are added, or when another matter prescribed in the regulations changes.

Section 62.1(1) of the Condominium Property Regulation makes the standard insurable unit description for a residential unit an additional matter for this notice.

Next step. Note the date each insurance certificate arrives, because the 30 days start then.

Sources: Condominium Property Act, Condominium Property Regulation

Section 62.1(2) of the Condominium Property Regulation says that, on receiving a notice of cancellation of an insurance policy, the corporation must give written notice of the cancellation to all unit owners as soon as possible. The subsection sets no day count.

Section 47(1)(a) of the Condominium Property Act separately requires a corporation, subject to the regulations, to place and maintain insurance on the units (other than improvements made by the owners) and the common property, where a building is divided into units. Section 62.1(2) does not say what the corporation must do about the coverage itself.

Next step. Ask the corporation's insurer or broker what the cancellation means for coverage, and ask the corporation's lawyer what the board must do about it.

Sources: Condominium Property Regulation, Condominium Property Act

Section 62(2) of the Condominium Property Regulation says the property insurance required under section 47 of the Act is subject to any reasonable deductible agreed by the corporation and the insurer. The subsection sets no maximum deductible and does not define 'reasonable'.

Section 62.4(4) of the Regulation has a different limit, $50,000. It caps what a corporation can require an owner to pay under section 62.4, not the deductible the corporation agrees with its insurer. Under section 48 of the Act, a change in the amount of the deductible payable in the event of a claim triggers written notice to each owner.

Next step. Ask the corporation's insurer or broker how the deductible on the corporation's policy was set and when owners were told of any change.

Sources: Condominium Property Regulation, Condominium Property Act

Yes, in some situations. Section 62.4 of the Condominium Property Regulation lets a corporation recover up to its insurance deductible from an owner for damage that originates in or from the owner's unit or an exclusive possession area assigned to the owner, subject to exceptions. A corporation must not require an owner to pay more than $50,000 under that section, despite any bylaw.

Section 62.4(3) says an owner, on demand by the corporation, is 'absolutely liable' for an amount up to the deductible, subject to subsection (4), the $50,000 cap, and subsection (6), the exceptions. Section 62.4(2) says the corporation is not required to file an insurance claim to recover up to its deductible from an owner. Under section 62.4(5) the corporation may collect by an action in debt or, if the bylaws permit, by levying a contribution. Service Alberta's March 2026 tip sheet also gives the cap as $50,000.

Next step. For a particular loss, ask the corporation's lawyer or insurer whether these rules apply before the board makes a demand.

Sources: Condominium Property Regulation, Owning a Condominium

Service Alberta's February 2020 fact sheet says no: for deductible costs up to $50,000, condominium corporations do not have to prove negligence on the part of the owner to recover the deductible. That sheet predates the changes to the Condominium Property Regulation that Alberta.ca says came into force on 26 February 2026.

Section 62.4(3) of the Regulation, in the consolidation current to 15 February 2026, makes an owner 'absolutely liable' for an amount up to the deductible for damage that originates in or from the owner's unit or an exclusive possession area assigned to the owner. Subsection (4) limits what an owner can be required to pay under the section to $50,000, and subsection (6) sets exceptions. The sheet gives a storage space as an example of an exclusive possession area, and it does not say what must be proved for costs above $50,000.

Next step. Ask the corporation's lawyer what the corporation must show to recover a deductible from a particular owner before the board makes a demand.

Sources: Recovery of Insurance Deductible, Condominium Property Regulation, Supporting Alberta's condominium communities

Section 62.4(6) of the Condominium Property Regulation says an owner is not liable under section 62.4 for damage that occurred because of a defect in the construction of the owner's unit or exclusive possession area. Nor is an owner liable for damage attributable to an act or omission of the corporation, or of a board member, officer, employee or agent of the corporation, or any combination of them.

Clause (c) adds damage resulting from normal structural deterioration of the common property, the managed property or the corporation's real property, other than property the owner was responsible to repair or maintain. The Regulation does not define 'normal structural deterioration'. Subsection (3) applies to damage originating in or from the owner's unit or an exclusive possession area assigned to the owner. The sources read for this page contain no rule on who pays the deductible when no owner is liable.

Next step. Bring the facts of the loss to the corporation's lawyer or insurer, who can say whether an exception applies.

Sources: Condominium Property Regulation, Recovery of Insurance Deductible

Yes, by bylaw. Section 60.2 of the Condominium Property Regulation says a corporation may, by bylaw, require owners to buy insurance for deductibles that may be payable to the corporation under section 62.4. The bylaw can also set out the particulars of that insurance and the proof an owner must give the corporation.

Section 32(3) of the Act says any bylaw may be amended, repealed or replaced by a special resolution. Service Alberta's March 2026 tip sheet says insurance for owners may also be available to cover deductibles and special assessments. Whether an owner's policy will pay a particular deductible is a question for the owner's insurer.

Next step. Ask the corporation's lawyer to draft the bylaw, including the insurance particulars and the proof owners must provide; see bylaws and disputes for more on bylaws.

Sources: Condominium Property Regulation, Condominium Property Act, Owning a Condominium

A chargeback is a charge the corporation may levy on an owner to recover its costs, if the bylaws provide for it, says section 39.01(1) of the Condominium Property Act. It applies when an act or omission by the owner, an occupant or a person for whom either is responsible requires the corporation to repair, replace, maintain or protect certain property.

That property is a unit, real and personal property of the corporation or common property affected by that act or omission. Section 39.01(1) is subject to subsections (2) and (3) and the regulations. Alberta.ca says the Service Alberta Statutes Amendment Act, 2024 came into force on 15 February 2026 and the associated Regulation changes on 26 February 2026. This answer describes section 39.01 as it appears in the consolidation current to 14 May 2026.

Next step. Check whether the corporation's bylaws provide for chargebacks, and ask the corporation's lawyer to review any chargeback bylaw before the board relies on it; see bylaws and disputes for how bylaws change.

Sources: Condominium Property Act, Supporting Alberta's condominium communities

Section 39.01(3) of the Condominium Property Act says the amount levied as a chargeback is the lesser of two amounts. One is the actual costs and reasonable related service costs referred to in subsection (2). The other is the deductible limit of the corporation's insurance policy. This applies whether or not an insurance claim is made.

Section 39.01(1) says a chargeback may be levied, subject to subsections (2) and (3) and the regulations, if it is provided for in the bylaws. Section 39.01(3) states no dollar figure. A $50,000 figure appears in section 62.4(4) of the Condominium Property Regulation, which limits what an owner can be required to pay under section 62.4, the deductible recovery rule. The sources read for this page do not explain how a chargeback and a deductible recovery fit together.

Next step. Ask the corporation's lawyer how a chargeback and a deductible recovery under section 62.4 of the Regulation apply to a particular loss.

Sources: Condominium Property Act, Condominium Property Regulation

Section 73.91 of the Condominium Property Regulation requires a board to serve notice of the proposed chargeback on the owner before levying it. The notice must be served no later than 90 days after the board becomes aware, or in the circumstances ought to have become aware, of the act or omission. Section 73.94 lets the owner appeal the chargeback to the Court within 30 days of service of the statement of chargeback.

This answer deals only with subsections (1) and (2) of section 73.91 and the appeal period in section 73.94. It does not describe the statement of chargeback under section 73.92 or other chargeback provisions. The act or omission is the one referred to in section 39.01(1) of the Act.

Next step. Record when the board became aware of the act or omission and any earlier date by which, in the circumstances, it ought to have become aware, and ask the corporation's lawyer to check the notice before it is served.

Sources: Condominium Property Regulation

Service Alberta's insurance premium fact sheet, published in December 2019, says no: property insurance availability and rates are not regulated in Alberta. It says insurers are free to choose to whom they will offer property insurance, and at what price.

Because the fact sheet dates from December 2019, it does not say whether any later rule affects a particular condominium policy.

Next step. Before renewal, ask the corporation's broker or lawyer whether any rule beyond the fact sheet affects how the policy is offered or priced.

Sources: Insurance premium increases

An owner can make a written request under section 44 of the Act for copies of the corporation's insurance certificates and insurance policies, and for the current standard insurable unit description for the residential units or classes of residential units. Section 20.52(1)(n) to (p) of the Condominium Property Regulation prescribes these documents for that purpose, subject to subsection (2).

Schedule 3 to the Regulation sets the minimum retention period for insurance policies, insurance records and the certificate for each policy at 7 years after creation. This answer does not set out subsection (2) of section 20.52, which qualifies the list of documents an owner can ask for.

Next step. Put the request in writing and keep a dated copy; see board duties for how quickly the corporation must reply and how long other records must be kept.

Sources: Condominium Property Regulation, Condominium Property Act