From time-to-time, major emergencies can occur in a condominium corporation. It is unfortunate when residents are affected within their suites. What can you expect when disaster strikes from a recovery perspective?
We asked IBX Services to provide us some details on dealing with these emergencies and what residents can expect.
Who should I contact and what should I do?
The first step in an emergency is to contact Property Management. If you are a tenant also be sure you contact your landlord to advise them. If personal effects, contents or upgrades within the unit are damaged or affected we strongly urge you to contact your Insurer as immediately as possible (most maintain 24 hours emergency lines to report losses)
My unit is not inhabitable. Where should I stay?
We strongly urge you to contact your Insurer to determine if you have coverage for accommodation. Generally speaking, alternative accommodation is not covered by your Condominium Corporation and/or Landlord.
Why is equipment left in my home?
Equipment has been placed to assist in the drying process related to a water loss in accordance with Industry Standards. Depending on the nature of the incident either air movers and/or dehumidifiers have been placed within your unit.
How long will equipment remain in my home?
Depending on the nature of the loss at least three days. The contractor will return within this time frame to monitor and assess the drying process. During this time frame it is extremely important that you do not shut off, adjust or alter the equipment placed within your unit. If equipment is shut off or otherwise altered the Unit Owner will be responsible for any further damages or costs which may be incurred. If any of the equipment malfunctions or stops working please contact Property Management so that the contractor may be advised.
When will repairs be completed?
Depending on the severity of damages and terms of Insurance Coverage this may vary. Repairs often require the authorization of Adjusters, Examiners and Insurance Companies. This process can often take extended periods of time.
What repairs will be completed?
Once authorized, repairs will be completed to restore your Unit back to its pre-loss state. If you reside within a Condominium Corporation repairs will be completed in accordance with the Standard Unit By-law or Unit Description. Upgrades or components not included within the Standard Unit are generally not covered by the Corporation and/or their Insurers. It is the responsibility of the Unit Owner to file a claim with their Insurer for these damages.
Who do I turn to for repairs to upgrades and for contents affected within my unit?
The contractor may work either directly with you and/or your Insurer to complete repairs to any upgrades or components of your Unit not covered by the Condominium Corporation. They may also be able to assist with removal, packing and storage of your contents during the claim process. Please discuss these options with Property Management.
What do you believe will be the status of corporation insurance deductible extending By-laws once Ontario’s condo law amendments are officially brought into effect ?
You recall that the changes are silent as to status of these By-laws under the 1998 Act effective May 4 & 5 2001.
Problem you will recall is that only a full Declaration amendment now legalizes such extension beyond the new legislation’s different, wider default setting.
A number of alerts were respectfully presented to the Province but without any evidence of recognition. It was pointed out this would be of major impact on many owners after an insurable loss within contemplation of the corporation master insurance. And even more so with corporate deductibles growing and many owners reportedly not insured accordingly for their widened exposure if blameworthy.
Any thoughts as to this aspect of “What to Expect After an Insurable Loss” ?
Thanks Bob for your question.
The approved revision to the Condominium Act under Bill 106 does specifically alter the ability to chargeback an insurance deductible:
105. (1) Subject to subsections (2), (3) and (4), if an insurance policy obtained and maintained by the corporation in accordance with this Act contains a deductible clause that limits the amount payable by the insurer, the portion of a loss that is excluded from coverage shall be a common expense.
Owner’s responsibility
(2) Subject to subsection (4), if an owner, a lessee of an owner, a person residing in the owner’s unit with the permission or knowledge of the owner, or any other person or thing that is prescribed, through an act or omission causes damage to a unit, the common elements or the assets, if any, of the corporation, subject to subsection (3), and if the corporation has obtained and maintained coverage for the damage under an insurance policy, the amount that is the lesser of the cost of repairing the damage and the deductible limit of the insurance policy shall be added to the contribution to the common expenses payable for the owner’s unit.
Exception
(3) Subject to subsection (4), subsection (2) does not apply if the damage to a unit, the common elements or the assets, if any, of the corporation was caused by an act or omission of the corporation or its directors, officers, agents or employees.
Alteration by declaration
(4) After a new board of a corporation is elected at a turn-over meeting held under section 43, a declaration may alter the circumstances in subsection (2) under which an amount shall be added to the contribution to the com-mon expenses payable for an owner’s unit if,
(a) the alteration is done in accordance with the restrictions or requirements, if any, that are prescribed; and
(b) the corporation has met all other requirements of this Act.
Where there is conflict between the By-laws of a Corporation and the Condominium Act, the Act prevails and the Corporation must adhere to those requirements. You may note the wording “as prescribed” several times in the section of Bill 106 which I have copied above. Perhaps the regulations, once released, will address your concerns.