Alberta Condo Special Assessment Insurance [Guideline]

Condo insurance provides protection against damages and repair costs for a condominium unit. Condo insurance frequently includes fire damage, burglary, theft, water damage, and other issues.

The Condo Organization is insured to protect the structure and shared features, but individual unit owners need additionally be insured to cover things like:

  • Extra living expenditures
  • Loss evaluations
  • Enhancements and improvements
  • Personal responsibility

What is Condo Special Assessment Insurance?

The special assessment condo insurance is also known as loss assessment coverage. It defends you from extra charges imposed by your condo association whenever its primary insurance company does not cover the total amount of demand.

An owner can also acquire insurance that covers special assessments. This coverage will help a unit owner if a condominium company experiences an insurance loss. The insured funds are insufficient to pay the costs, and the company imposes a special fee to make up the difference. This will only happen under extremely rare situations.

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Is Condo Insurance Mandatory in Edmonton?

No, it is not required, but there is a significant exception. While the government may not compel you to obtain condo insurance, the lender will want protection for their investment if you have a loan. It’s also a good idea to obtain house insurance to safeguard your belongings and yourself from responsibility.

Why Does Condo Special Assessment Insurance Important?      

Condo Special Assessment Insurance is Important. If the company has an insured loss and lacks enough insurance to cover the harm, it may impose a special assessment to reimburse the costs. Unit owners who have special assessment insurance coverage as part of their unit owner’s insurance policy will be eligible to receive compensation from their insurers for their share of the special assessment.

 End of the day, it is critical to comprehend that special assessment condo insurance Alberta only applies if the loss is insurance. As these are unusual situations, we highly advise every unit homeowner to approach their insurance to confirm that they will have special assessment insurance coverage.

Commercial Condo Policy vs. Personal Condo Policy  

In below, describe the difference between a commercial condo policy and a personal condo policy.

Commercial Condo Policy

This defends the property on its own and applies to both inside and outside common spaces. These are places that neither one condo owner can properly be expecting to be accountable for under their own. Shared corridors, foyers, elevators, a roof, a pool, a gym are examples of such places. It also defends residents from circumstances that might endanger the public, such as falling glass.

Also Check: Condominium Property Act in Alberta

Personal Condo Policy

This safeguards unit owners’ financial interests, including improvements due to unit upgrading and personal goods, included therein. Many unit people mistake not buying this coverage since they believe their commercial condo coverage would protect them. This is not true. Always obtain your own insurance.

What Condo Insurance Covers?

A common condominium insurance plan covers the following categories:

Personal Liability

Legal fees incurred as a result of claims or lawsuits filed against you. Condo liability coverage provides you and your families with bodily injury and property damage lawsuits.

Liability insurance is an essential component of all condo insurance policies, as it is for owners and tenants. Without liability insurance, a condo owner may pay for legal fees out of pocket, which might be financially disastrous.

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Building Property

The unit itself, including walls and fittings, is considered building a property. Recommended condo insurance coverage inside your unit, including sinks, tiling, the floor, internal walls, cupboards, and any other regular feature.

If a condo is harmed or entirely destroyed by a recognized danger, your condo insurance company will pay the money towards the policy’s coverage maximum. This is often the entire cost of maintaining the unit.

For example, You remodel your kitchen, developing extra decorations, and replacing fixtures. This creates a high level of the unit’s interiors, and it may cause your total house worth to exceed your previous residence coverage limit.

Loss Assessment

Your share of any damages distributed by the association. Loss assessment, also known as special assessment coverage, is an optional coverage that may be adding to a condominium insurance policy. It applies to circumstances in which condominium unit owners are financially accountable for shared damage, and the problem is an insured risk.

For example, Fire damage to your condo building’s entrance probably costs the organization longer than initially budgeted. Special assessment coverage will cover the individual portion that unit owners must give to make up the shortfall.

Personal Property

Furniture, electronics, and other moveable commodities are examples of personal property. Personal property coverage in an HO-6 insurance policy protects a condo owner’s valuables.

Condo insurance, like homeowners insurance, will replace any property owned by the condo owner or family members in the case of a loss, up to the policy amount.


For example, A windstorm destroys a window in your condo, allowing rain to pour in and saturate your furnishings. A condo insurance policy would cover the expense of repairing both the window structure and the furnishings.

Loss of Use

Costs of lodging/transportation if the unit is uninhabitable. Loss of use coverage is less well-known than an asset or structural cover, although it may be highly beneficial.

Suppose your condo turns unsuitable caused by damage or an evacuated order. In that case, losses of the use insurance reimburse you for the additional expenditures you pay to maintain your usual quality of life.

For example, suppose your condo burns down, leaving you without somewhere to stay. Damage of use coverage will pay for your lodging and board at a separate location while your vehicle is repairing. In some cases, it may even cover the extra expenses of a lengthier journey.

How Much Does Condo Insurance Cost?

 Compared to homeowners insurance, personal condo insurance is relatively inexpensive, especially when considering its security. This sort of insurance policy can purchase for as low as $20 per month. According to home insurance specialists, the typical personal condo insurance coverage in Canada costs around $27 and $33 per month.

Also Check: Sell Your House Privately

The amount you may anticipate to pay will determine by the insurance limits you choose: the higher the monthly premium, the more comprehensive the coverage.

FAQ (Frequently Ask Question)

What is Special Assessment Insurance?

A special assessment is a cost levied to a homeowner by a condo insurance special assessments or homeowners association (HOA) in addition to normal dues to address unexpected budget deficits. Special assessments might range from a few hundred dollars to thousands of dollars.

Does Loss Assessment Coverage Cover Special Assessments?

However, insurance plans generally only cover exceptional assessments resulting from unforeseeable events such as a natural catastrophe. They would not cover special assessments for ordinary building repairs.

However, conduct your own research and consult with your insurance representative about your alternatives. Alternatively, you might call various insurance providers for additional information. The following excerpts were collecting from several sites.

What is Special Loss Assessment Coverage?

Loss assessment coverage can assist a condo owner in avoiding having to pay out of pocket if their condo association imposes a special assessment for expenditures connected to an insurance claim that occurred outside the walls of their unit. Loss assessment coverage is frequently an optional benefit that may be adding to a unit owner’s condominium insurance plan, and it can be helpful in a variety of situations.

How are Special Assessments Paid?

Some special assessments are paid in modest sums regularly till the bill is paid off, and some are a one-time fee paid in one big sum by each household.

Can You Write Off Special Assessments?

The simple answer is that there is never a 100 percent assurance that you will avoid a special assessment unless you continue to rent. It is a type of ownership risk.

Who Pays Special Assessments, Buyer or Seller?

Unless otherwise negotiated by the buyer and seller, the seller is generally liable for any existing or assessed but uncollected special assessments when the agreement is made.