Property Managers & Condo Boards
Condo Corporation Insurance
Insurance for the corporation, the common property, and the board, built for the managers who run it.
Condominium corporation insurance is the policy a condo corporation is legally required to carry in Alberta: replacement-cost coverage on the units and common property the corporation insures, plus liability for the common areas. In practice it also includes directors and officers coverage for the board, equipment breakdown for the building's systems, and crime coverage. Under the Condominium Property Act, the corporation, not the individual owners, insures the building, so how the policy is structured, and where its deductible lands, matters to every owner and to the property manager who runs the corporation. Velocity builds these programs for condominium corporations across Alberta and works directly with the property managers and boards who make the decisions.
The Exposure
Risks you face.
A condominium corporation insures a shared, owner-occupied building on behalf of dozens of people. Its exposures span the structure, the board, and the line between corporate and owner responsibility.
Water damage and rising deductibles
Escape of water, a burst pipe or an overflowing appliance, is the leading condominium claim in Alberta, and insurers have pushed water deductibles up sharply, often into the tens of thousands. How the corporation manages that risk, and where the policy deductible sits, has become a major consideration for boards and managers.
The deductible charged back to an owner
Under the Condominium Property Regulation, when a claim starts in an owner’s unit, that owner can be held responsible for the corporation’s deductible, up to a maximum of $50,000. Owners who do not carry their own coverage are exposed, and so is the corporation when they cannot pay.
The gap between the corporation and the unit
The Standard Insurable Unit Description, the list set in your bylaws of what the corporation’s policy covers inside a unit, sets that line. Anything an owner has added beyond that standard is theirs to insure, and misunderstanding it is a common source of disputes after a loss.
Claims against the board
Volunteer directors make decisions about money, maintenance, and enforcement, and owners can name them personally when they disagree. Without directors and officers coverage, board members risk their own assets to serve.
Underinsurance at replacement cost
The Act requires the building to be insured at full replacement value, but rising construction costs can quietly leave a corporation underinsured. After a major loss, the gap falls on the owners through a special assessment.
Theft or fraud involving corporate funds
Corporations hold operating and reserve funds that pass through managers and boards. Theft and fraud are real exposures, and a loss to the reserve fund can set a building’s capital plan back years.
The Protection
Coverages we recommend.
Commercial Property (Replacement Cost)
Can insure the building, the common property, and the units to the Standard Insurable Unit Description at full replacement cost, the core coverage the Condominium Property Act requires. Coverage that helps rebuild to current building codes is worth adding on older buildings.
Commercial General Liability
Can cover injury or property damage to a third party arising from the common areas: slips on walkways and lobbies, injuries in amenity spaces, and parking areas. Essential and expected on every corporate policy.
Directors & Officers Liability
Can protect the personal assets of the volunteer board against claims arising from their decisions, from finances and maintenance to bylaw enforcement. The coverage that makes it safe for owners to serve.
Equipment Breakdown
Can cover the sudden failure of boilers, HVAC, elevators, and building systems, and the damage that failure causes, which a standard property policy leaves out.
Crime / Fidelity
Can protect the corporation’s operating and reserve funds against theft, fraud, and forgery, including by a manager, board member, or employee handling the money.
Umbrella / Excess Liability
Extra liability limits stacked on top of the primary policy, giving larger corporations the higher limits their size, amenities, and lender requirements call for.
Coverages shown are general examples, not a description of any specific policy. Policy coverages widely vary and should be confirmed with your broker.
How the coverage fits Alberta’s condo rules
Condo insurance in Alberta is shaped by the Condominium Property Act and its Regulation. The corporation must insure the units and common property at full replacement value, plus liability, and each corporation adopts a Standard Insurable Unit Description that sets what its policy covers inside a unit, with anything beyond it insured by the owner. When a claim starts in an owner’s unit, the Regulation lets the corporation charge its deductible back to that owner, up to a maximum of $50,000, unless the loss came from a construction defect, an act or omission of the corporation, or normal wear on the building, which is exactly why every owner needs their own unit policy. Separately, every corporation must keep a reserve fund study updated at least every five years for capital planning, and since December 1, 2021, condominium managers must be licensed by the Real Estate Council of Alberta. We help managers and boards line the corporation’s coverage up with all of it.
Why property managers choose Velocity
We work directly with condominium managers and boards, not around them. We understand the Standard Insurable Unit Description, the deductible-chargeback rules, and rising water deductibles, we help boards see clearly where the corporation’s policy ends and unit-owner policies begin, and we issue the certificates, summaries, and lender documentation managers need to keep owners, lenders, and buyers informed without chasing paperwork.
How Pricing Works
What drives your premium
- Building value & replacement costThe Condominium Property Act requires the corporation to insure the building and common property at full replacement value, so a larger or higher-spec building costs more to cover.
- Age & construction typeOlder buildings and their aging plumbing, wiring, and roofs cost more to insure than newer builds with modern materials and systems.
- Units & amenitiesMore units and shared features (elevators, underground parking, a pool, or a gym) add exposure and raise the premium.
- Water-damage & claims historyEscape of water is the leading condo claim in Alberta, so past water losses and an overall claims record are the single biggest driver of your price.
- Corporation deductibleA higher deductible lowers the premium but raises what the corporation (and, through chargeback, an owner) pays on a claim.
- Directors & officers exposureThe size of the board, the funds it manages, and its enforcement decisions shape the cost of protecting the board against claims.
- Location & local hazardsExposure to hail, wildfire, or flooding in the building’s area affects the premium.
Common Questions
Questions ownersactually ask.
What insurance is a condo corporation required to have in Alberta?
Under the Condominium Property Act, the corporation must insure the units and common property it is responsible for at full replacement value, and carry liability coverage for the common areas. Most corporations also carry directors and officers coverage, equipment breakdown, and crime coverage, which are standard practice rather than strict legal requirements.
Can our condo corporation charge its insurance deductible back to a unit owner?
Yes. Under the Condominium Property Regulation, when a claim starts in an owner’s unit or exclusive-possession area, that owner can be held responsible for the corporation’s deductible, up to a maximum of $50,000. The owner is not responsible where the loss came from a construction defect, an act or omission of the corporation, or normal wear on the building. Because that amount can be large, every owner needs their own unit policy to cover it.
What is a Standard Insurable Unit Description (SIUD)?
It is the description, set out in your bylaws, of the standard fixtures and finishes the corporation’s policy covers inside a unit. Anything an owner has added or upgraded beyond that standard is their own to insure. Because the SIUD differs from one corporation to the next, owners and managers should check their own corporation’s to know exactly where the line sits.
Why have our condo insurance deductibles gone up so much?
Escape of water, a burst pipe, an overflowing appliance, or a failed hot-water tank, is the leading condominium claim in Alberta, and insurers have responded by raising water deductibles substantially, often into the tens of thousands of dollars. Managing that water risk and choosing the right deductible is now central to a corporation’s renewal.
Do property managers of Alberta condos need to be licensed?
Yes. Since December 1, 2021, condominium management has been a licensed activity in Alberta, regulated by the Real Estate Council of Alberta. Corporations that self-manage, and their own employees, are exempt, but a company providing condo-management services must be licensed.
How often does our condo need a reserve fund study?
A condominium corporation must get a reserve fund study from a qualified provider and update it at least every five years, with a first study required not long after registration. The study plans for major repairs and is separate from insurance, but an underfunded reserve and a large uninsured deductible are a bad combination, which is why the two are best planned together.
Does the corporation’s policy cover what’s inside my unit?
Only up to the Standard Insurable Unit Description. Your contents, any improvements beyond the standard, and the deductible the corporation may charge back to you are covered by a unit-owner condominium policy, not by the corporation’s. A good manager and broker make sure owners understand that split before a claim, not after.
Built for the corporation,the building, and the board.
Tell us about the corporation, the building, and the board, and we’ll review the coverage against Alberta’s condo rules and your bylaws, and work with you at renewal. Built for managers and boards.
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