Gateway Insurance is a leading broker for Condominium Corporation in Nova Scotia.

In addition to being a member in good standing of the Nova Scotia Branch of the Canadian Condominium Institute, Ken Myers has presented at Institute seminars as well as numerous annual general meetings for Condominium Corporation in Nova Scotia.

In recent years, Condominium Corporation have been challenged to make sure unit owners are responsible for costs as a result of their negligent actions. If a unit owner acts negligently (i.e. allows his sink to overflow), the condominium corporations policy will potentially be the one that pays, with no recourse whatsoever against the “responsible” unit owner. The result is that there is no recourse against unit owners whose actions have financial implications towards the corporation.

With recent changes to the Condominium in Nova Scotia, the Boards of Directors of Condominium Corporations now have some recourse.

Gateway Insurance is a leading broker for Condominium Corporation in Nova Scotia.

Section 35 states:

(8) The corporation has the right to recover all costs, including insurance deductibles, paid by the corporation for any repairs that the corporation makes to a unit.

(9) The corporation may recover any insurance deductible in respect to damage to any unit or common elements from an owner if that owner is responsible for the damage.

While corporations cannot recover the full amount of the damage, they can take action to recover their deductible, which could be quite large for some properties. It is worth noting that a Condominium Unit Owners Policy will generally include a coverage described on their personal policies as Loss Assessment or Unit Additional Protection. This coverage will generally pick up the assessment of a deductible.

It will take some time to see how this plays out. Will corporations select higher deductibles on their policies? How will it be difficult and who will determine if the unit owner is “responsible”? How does being “responsible” differ from being "legally liable"?

The changes to the Condominium Act go well beyond what we have discussed here and are good news for unit owners. Just ask Gateway and ensure that you are adequately insured.

Gateway Insurance is a member of The Canadian Condominium Institute — Nova Scotia Chapter.

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