Should unit owner pay deductible after fire?

Q We had a fire in our condominium complex last winter on the deck of one of the units. The fire department made no real effort in determining the cause of the fire. We are aware that the tenant smokes on their deck. We are curious as to what burden of proof is required to charge the owner with the deductible that the condominium complex has in place on our insurance policy? Please help.

A The law in Alberta changed on Jan, 1, 2020. Section 62.4(1) of the Condominium Property Regulation (Alta Reg 168/2000) provides that a condominium corporation can recover the amount of any insurance deductible from an owner to a maximum amount of $50,000.

Subject to a limited number of exceptions, on demand by the condominium corporation, an owner is absolutely liable to the condominium corporation for the amount of the deductible (to a maximum of $50,000) in the condominium corporation’s insurance claim for damage that originates in or from the owner’s unit or an exclusive possession area assigned to the owner.

The general purpose of s. 62.4 is to set out a special process for the collection of deductibles, including strict liability on the part of the owner in whose unit the loss originated. The condominium corporation does not have to prove negligence at all. This is a significant change in the law.

Helpful Hint: This change in the law relating to insurance deductibles was to ensure that owners do not bear the brunt of this significant cost when an insurance loss occurs. The owner responsible for the insurance loss would be held accountable. I would urge all condominium unit owners to consider purchasing insurance deductible coverage.

Roberto Noce, Q.C. is a partner with Miller Thomson LLP in both the Edmonton and Calgary offices. He welcomes your questions at albertacondolaw@millerthomson.com. Answers are not intended as legal opinions; readers are cautioned not to act on the information provided without seeking legal advice on their unique circumstances.