Insurance. The Condominium Corporation & The Condominium Unit Owner. A presentation for The 2008 Toronto Condo Show, by Darlene Cade, CSIB, BSC., Cade Associates Insurance Brokers Limited and Michael H. Clifton, M.A., LL.B., ACCI (Law), Clifton Kok LLP Legal Counsel. Introductions.
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The Condominium Corporation
& The Condominium Unit Owner
A presentation for The 2008 Toronto Condo Show, by
Darlene Cade, CSIB, BSC., Cade Associates Insurance Brokers Limited and
Michael H. Clifton, M.A., LL.B., ACCI (Law), Clifton Kok LLP Legal Counsel
AND ASK OURSELVES….
And before we talk about toilets…
…What type of condo are you?
Our discussion will be limited to what is relevant for Standard Condominium Corporations:* and in respect of them, whatever the shape and size, there is always a Condominium Corporation and a Unit Owner.
*(For other types of condominium, see your insurance and/or legal counsel for advice.)
NOTE: If there is no “standard unit definition” there are no improvements!
A “status quo” definition aims to preserve just that: the “status quo”. This type of definition often includes a detailed table that may provide specifications of certain fixtures, including paint shades, faucet styles and sizes, trim, counters, counter-tops, flooring, etc.
This definition makes only the minimum components of the unit “standard” – such as unfinished boundary materials or “shell” of the unit (such as dry wall and sub-floor), and basic components required for the supply of heat and utilities (but not necessarily including any fixtures that use them).
Which brings us to the next topic…
Personal Property of the Unit Owner
Personal Liability of the Unit Owner related to ownership, occupancy & use of the Unit
The Package also includes:
To rebuild own Unit if the Corporation fails to carry sufficient insurance to rebuild
To pay assessments imposed by the Corporation related to an insured loss – i.e. Corporate DeductiblesUnit Owners’ “Ideal” Insurance
Do I have sufficient insurance limits to rebuild my Unit, with all my desired improvements?
i.e. burns to floor, fire damage to cabinets, countertops and water damage claims
Insurance Costs increase
Cost of insurance is passed through common expense to Unit Owners
Dissatisfied Unit Owners at the next condo meeting!
& Action Plan
Start with a clear and sensible Standard Unit definition (and make sure the Owners know what it says!)
Better Risk Management awareness to Unit Owners
Increase Corporate insurance Deductible
Unit Owner pays for damage to own unit under the deductible amountClaims for Unit Damage
Damage in Unit A, affecting only Unit A
Damage in Unit A, affecting Unit B
Damage in Unit A, affecting Units B, C and D
Damage in Unit A, affecting only part of the Common Elements
Damage in Common Elements affecting Unit A