Step-by-Step Checklist for CPA Insurance Compliance
This checklist ensures the condominium corporation meets all legal insurance obligations under Alberta law.
1. Confirm Required Insurance Coverage
Verify that the condominium corporation maintains insurance for:
The common property and standard insurable unit components (as defined in the Standard Insurable Unit Description (SIUD) registered with Land Titles).
All mandatory perils listed in the Condominium Property Regulation, including fire, water damage, and vandalism.
Directors and Officers (D&O) insurance to cover board members.
Crime coverage to protect against fraudulent or dishonest acts.
2. Review Policy Limits and Deductibles
Ensure that replacement cost coverage is included for all insured property.
Confirm that policy deductibles are reasonable and comply with CPA guidelines.
Verify that unit owners are properly informed of their obligation to cover up to $50,000 in deductible costs when damage originates from their unit.
3. Maintain Insurance Documentation
Obtain and retain copies of insurance policies, renewal documents, and endorsements.
Ensure that all insurance details are available to unit owners upon request.
4. Notify Unit Owners of Insurance Changes
Provide written notification of any changes to the corporation’s insurance policy, including:
Coverage updates
Deductible changes
Policy renewals
Follow CPA notification requirements to inform unit owners within 30 days of any coverage changes.
5. Verify Insurance Provider Compliance
Work with a licensed and experienced insurance provider specializing in condominium coverage.
Ensure that the insurance policy meets all legal and bylaw requirements.
Unit Owner Communication Plan for Insurance Updates
To ensure compliance with CPA requirements, condominium corporations must provide timely and clear communication regarding insurance policies.
Required Communications to Unit Owners
The board must provide the following insurance information:
Annual Insurance Certificate: Send unit owners an updated insurance certificate, including details of coverage and deductibles.
Notification of Policy Changes: Notify unit owners within 30 days of any material changes in coverage.
Claim Process Instructions: Provide unit owners with information on how insurance claims are handled, including their financial responsibility for deductible costs.
Communication Methods
To ensure all owners receive important insurance updates, consider using:
Email notifications with detailed policy summaries.
Hard-copy mailings for official notices.
Website updates (if applicable) for easy access to insurance documents.
Annual General Meeting (AGM) discussions to address owner questions and concerns.
Best Practices for Transparency
Use clear, plain language to explain insurance policies and deductibles.
Include a FAQ section addressing common owner concerns.
Provide contact information for the insurance provider for owner inquiries.
Policy Review Schedule for Continuous Compliance
To ensure compliance with changing regulations and evolving risks, condominium corporations should establish a structured insurance review process.
Annual Policy Review (Once Per Year)
Review the entire insurance policy for compliance with CPA and CPA regulations.
Confirm that all required perils remain covered.
Check that the corporation’s liability limits align with current legal and financial risks.
Verify that unit owners' financial obligations (e.g., deductible responsibility) are clearly communicated.
Mid-Year Policy Check (Every 6 Months)
Reassess whether changes in property value or risk factors require coverage adjustments.
Ensure that any bylaw amendments regarding insurance requirements are incorporated into the policy.
Verify that all board members understand their D&O coverage and associated risks.
Post-Incident Insurance Review
After any major loss or claim, evaluate whether the policy performed as expected and identify any gaps in coverage.
Determine whether policy updates are needed to prevent future financial risks.
