WHAT IS A STANDARD INSURABLE UNIT DEFINITION?
For any Condominium property built, there is a standard level of interior finish for each unit class as defined by the building developer. It is this description of what those standard interior finishes are that help the condominium corporation and the unit owner clearly define insurance needs for each party for a given unit.
The Condominium Property Amendment Act requires that all existing condominium corporations pass bylaws to define the “standard insurable units” in the condominium. This would require older properties without a Standard Unit Description provided by their developer to define and create an updated version of a Standard Insurable Unit Description for the corporation.
Until recently, this has been projected to take effect before a corporation’s first insurance renewal after January 2020 – however Service Alberta has placed all Phase II changes to the Condominium Property Act on hold. Over the coming months, Service Alberta will be meeting with key stakeholders to discuss the proposed regulation changes and make amendments based on the feedback provided.
This does not necessarily mean that the industry should expect changes to the proposed Standard Insurable Unit Description, but that there may be further revisions made during this review period which will likely effect the amendments set for January 2020, including the Standard Insurable Unit Description. The review pediod is currently set to last 6 months, between July 2019 and January 2020.
Please see this press release from Service Alberta for more information: Press Release
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 skillset, and are uniquely positioned to assist condo boards with defining their standard insurable units. We offer a turnkey 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.