Apartment Smarts: Bylaws should set situations for insurance coverage deductibles

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Pricey Tony:

Is a strata entitled to gather the quantity of damages from an proprietor when the origin of the declare is from their strata lot?

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Our bylaws require an proprietor to pay for any strata insurance coverage deductible once they have precipitated a declare, however does this additionally apply to a flood attributable to the proprietor when there isn’t any declare?

With excessive deductibles, properties are more and more pressured to assert again prices and never file claims. What steps can we take to make this a assure we will acquire the losses?

— Darlene V., Surrey

Pricey Darlene:

The Strata Property Act creates a provision the place an proprietor could also be required to pay for a deductible portion in the event that they had been chargeable for the declare.

The supply isn’t a “catch-all” situation that might safe assortment, damages, or different losses. Strata firms are suggested to outline the situations or obligations by adopting a bylaw that units out the situations the place the prices of insurance coverage deductibles, damages and different associated prices might develop into the duty of the proprietor.

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The legislation places of work that routinely help strata firms present dependable bylaw codecs to help your danger administration applications; nevertheless, that is solely step one. Efficient administration of a bylaw and correct discover to all homeowners and tenants every time there are adjustments to insurance coverage insurance policies or constructing situations, can also be important.

Within the current Civil Decision Tribunal insurance coverage choice with NW 2487, the strata company was unable to gather an quantity of damages that was a harm declare solely as a result of the strata company selected to not file a declare, cowl the deductible quantity as a strata value and the equal quantity coated by the proprietor.

The strata company failed to provide correct discover to the homeowners that the insurance coverage deductible had elevated from $10,000 to $100,000, and their bylaws didn’t help damages not coated by a declare or under such an quantity.

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The bylaw had additionally set a a lot larger burden for the strata to successfully show a willful act or negligence. This isn’t mandatory, as the brink for “accountable” is a decrease check of proof.

Whereas the choice is unlucky for the strata company, it supplies us with worthwhile path on insurance coverage bylaws and strata administration. 1. A bylaw that addresses duty for insurance coverage deductibles and damages is crucial. 2. At any time when there’s a change in insurance coverage coverage quantities, deductibles, exemptions or situations, a strata company is required to provide quick, direct discover to homeowners and tenants. A normal posting within the minutes or on an online portal doesn’t represent discover.

Tony Gioventu is government director of the Condominium Residence Homeowners Affiliation. Electronic mail [email protected].

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