WHAT IS A STANDARD INSURABLE UNIT DEFINITION?
The Condominium Property Amendment Act requires that all existing condominium corporations pass bylaws to define the “standard insurable units” in the condominium. According to the Act, the bylaw must be passed before the corporation’s first insurance renewal after January 2020.
The standard insurable unit bylaw gives a description of the unit as unimproved. It is the responsibility of the condominium corporation to obtain insurance covering the unimproved or “standard” unit (subject to a reasonable deductible). Insurance for any improvement to the unit is the responsibility of the owner. An improvement is any feature which is not part of the standard unit description.
Therefore, when the standard unit bylaw is passed, each owner should take a copy of the bylaw to the owner’s insurance broker. The owner should also give the broker a list of all features of the unit, which are not included in the standard unit description. Those are the unit improvements. The broker should then be asked to make sure that the owner’s insurance policy provides adequate coverage for those improvements.
NORMAC AND STANDARD INSURABLE UNIT DEFINITIONS
At Normac, we have always provided standard insurable unit descriptions in our appraisals. With this new requirement by the Act in place, we have the expertise and skill-set, and are uniquely positioned to assist condo boards with defining their standard insurable units. We offer a a turn key solution that that will allow condo boards to focus on other areas required of them, while we take on the heavy-lifting of standard insurable unit definitions.