Risk & Business Magazine Knight Archer Insurance Fall 2016 | Page 7

CONDOMINIUM PROPERTY ACT

BY: KNIGHT ARCHER
INSURANCE BROKERS

Condominium Property
Act Amendments
What Are The Insurance Implications In Saskatchewan?

T

he Condominium Property
Amendment Act, 2013
and the Condominium
Property Amendment
Regulations, 2014 took
effect on June 16, 2014, and amend The
Condominium Property Act , 1993 and
The Condominium Property Regulations
2001, respectively. These amendments
add several requirements and protections
to the existing legislation, including the
following:
•

Requirement for condominium
corporations, developers and
unit owners to possess additional
insurance policies

•

Expansion of dispute resolution
options and processes

•

Establishment of additional
consumer rights and protections

The amendments were created with
input from various parties, including
condominium owners, developers,
surveyors, insurers and lawyers. Justice
Minister and Attorney General Gordon
Wyant said, “There is strong support
for these amendments within the
condominium sector. These amendments
will strike a balance amongst the

varied interests in the condominium
community.”
INSURANCE IMPLICATIONS
The amendments brought about
three main changes to the insurance
requirements for condominium
corporations, developers and unit owners.
The first change impacts condominium
corporations, which are now required to
carry insurance on any series of units that
were constructed for residential purposes
and share common load-bearing walls or
continuous roofing, commonly referred to
as townhouses or multi-family dwellings.
The insurance must be taken out on behalf
of the corporation and the unit owners,
and it must secure against major perils in
an amount equal to the replacement cost
of the units.
The amendments also mandate that
condominium corporations must secure
directors’ and officers’ liability insurance
to protect against liability arising out of
any act or omission by a member of the
board or an officer of the corporation
with respect to carrying out the position’s
functions and duties.

corporations, the amendments dictate
that corporations must complete an
annual review of the insurance they carry
and provide a written report on coverage
details at each annual general meeting.
The report must include:
•

The name of the insurance carrier

•

The name of the insurance agent or
broker

•

The amount of insurance

•

The renewal date

•

Any additional endorsements

•

The deductible

•

The premium

•

A list of any reported claims,
including the amount of claim, type
of loss, cause of loss, whether the
deductible was recoverable from a
unit owner, and the impact on the
insurance premium

Contact Knight Archer Insurance
Ltd. with any questions about how
these amendments will impact your
organization. +

In addition to modifying insurance
requirements for condominium

FALL 2016

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