Legal Requirements for Notifying Unit Owners of Insurance Changes
Condominium corporations in Alberta are legally required to provide timely and accurate insurance notifications to unit owners. The Condominium Property Act (CPA) and Condominium Property Regulation (CPR) set out these requirements to ensure that owners remain informed about changes to their corporation’s insurance coverage.
What Information Must Be Provided?
The corporation must notify owners of:
Any changes to insurance coverage (e.g., new policies, coverage limits, deductible amounts).
Any material changes to policy terms that may affect owners.
Renewal details for the corporation’s insurance policy.
Loss assessment coverage information, which explains how unit owners may be held responsible for certain losses.
Who Must Be Notified?
All unit owners must receive written notification.
Owners must ensure their tenants are informed if required.
The Condominium Property Regulation requires that condominium corporations provide unit owners with a copy of the corporation’s insurance certificate annually and notify them of any changes within 30 days.
Timing and Format for Insurance Notifications
When Must Owners Be Notified?
Owners must be notified within 30 days of any change to the corporation’s insurance coverage.
A copy of the insurance certificate must be provided annually to all unit owners.
How Should Notifications Be Sent?
The CPA does not specify a single method, but best practices suggest using:
Email
Mail
Common Mistakes in Insurance Notifications and How to Avoid Them
Failure to Notify Within 30 Days
Risk: The board may be held liable if an owner is unaware of a change and suffers a financial loss.
Solution: Create a notification schedule to track deadlines.
Unclear or Incomplete Information
Risk: Owners may not understand what has changed or how it affects them.
Solution: Clearly outline what has changed, why, and any actions owners must take.
Sending Notifications Only Once
Risk: Some owners may not receive or acknowledge the notice.
Solution: Use multiple methods (email, mail, bulletin board) to ensure delivery.
Not Keeping Proof of Notification
Risk: If a dispute arises, the corporation may not have evidence that it complied with notification requirements.
Solution: Maintain copies of emails, registered mail receipts, or meeting minutes as proof.
