The provided information pertains to the insurance requirements for a condominium corporation. Here are the key points:
- Insurance on Units and Common Property: The corporation is required to place and maintain insurance on the units (excluding owner improvements) and the common property against specified perils prescribed by regulations.
- Insurance on Improvements: If required by bylaws, the corporation must also place and maintain insurance on the improvements made to the units by the owners against specified perils.
- Additional Insurance Coverage: The corporation has the option to place and maintain insurance on the units and common property against additional perils not specifically required by the regulations.
- Insurable Interest: The corporation has an insurable interest in the units and the common property for insurance purposes.
- Exclusion of Perils: The corporation is not required to insure against perils that do not affect the common property.
- Replacement Cost Coverage: When placing and maintaining insurance, the corporation must ensure it covers the replacement cost value. This means that in the event of destruction or damage, the settlement should not deduct depreciation from the property’s replacement or repair costs.
- Continuation of Additional Insurance: If the corporation places insurance for additional perils (beyond the required coverage), it can continue to do so unless prohibited by a resolution passed at a properly convened meeting of the corporation.
- Insurance Payments: Insurance payments received from an insurer for the destruction or damage to a unit or common property must be paid to the insurance trustee designated in the bylaws or, if none is designated, to the corporation. The funds must be used promptly for the replacement or repair of the insured property.
- Corporation and Owner Insurance: If both the corporation and an owner have insurance covering the same property, the corporation’s insurance is considered “first loss insurance,” and the owner’s insurance is considered “excess insurance.”
- Additional Liability Insurance: The corporation is also required to place and maintain insurance for specific liabilities, including liability incurred by board members or officers, liability incurred by the corporation, liability as an occupier of the common property, and liability arising from machinery, equipment, pressure vessels, and vehicles.
Please note that specific insurance requirements and coverage may vary depending on local legislation and the governing documents of the condominium corporation. It is important to refer to the applicable laws and consult with legal and insurance professionals for accurate and up-to-date information.