Part 52 published on 01/11/15
Owner not responsible for deductible portion of loss under corporation’s insurance
Water leaked from the owner’s refrigerator, causing damage to the owner’s unit and to an adjacent unit. There was no evidence of negligence. The damage to the owner’s unit was estimated at $5,846.62, but had not been carried out. The condominium corporation repaired the adjacent unit, at a cost of $19,642.62, and demanded that the owner reimburse the corporation in that amount. The owner paid, but then sued the condominium corporation.
The damage in question was insured damage under the corporation’s insurance policy, but fell within the $35,000 deductible on the policy. The condominium corporation claimed that the owner was responsible for that deductible loss.
The Court held that the owner had no duty to indemnify the corporation or to pay the deductible under the corporation’s by-laws. The Court said:
As stated, (the condominium corporation’s) by-laws are silent relating to insurance deductibles. As (the condominium corporation) had a contractual and legislative obligation to insure, the owners have impliedly accepted a mode of “self-insurance” for expenses incurred to the deductible level to be shared by all owners and not the sole responsibility of a unit owner.
The Court also held that the deductible was unreasonably high, in the particular circumstances.
The Court accordingly held that the condominium corporation was obligated to pay the amounts of $19,642.62 (which had been paid by the owner) and $5,846.62 (estimated for repairs to the owner’s unit); and granted judgment in favour of the owner in the amount of $25,000, being the monetary limit of the Small Claims Court.