Alberta Residential Corporation v. Certain Lloyd's Underwriters (Alberta Court of Appeal)

Damage was caused, by water escape, to a unit in the condominium.  The condominium corporation had insurance covering the common property and the units (apart from unit improvements).  The insurer asserted that “the boundary of the unit, and the unit, are synonymous for insurance purposes”.  Therefore, the insurer asserted that it had no responsibility to cover any damage to the unit beyond damage to the unit boundary features.

The chambers judge held that the unit boundaries form only part of the unit, and that the unit also includes all real estate features and all space within those boundaries.  The insurer appealed and the appeal was dismissed.