Legislative Requirements


Every condominium corporation in Ontario is required under The Condominium Act, RSO 1998, Section 99 (1), to maintain replacement cost insurance for its units and common elements, to wit:




  1. The corporation shall obtain and maintain insurance, on its own behalf and on behalf of the owners, for damage to the units and common elements that is caused by major perils of the other perils that the declaration or the by-laws specify.

  1. In subsection (1), 'major perils' means the perils of fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes or civil commotion, impact by aircraft or vehicles, vandalism or malicious acts. Any exclusion in the insurance required by this section is not effective with respect to damage resulting from faulty or improper material, workmanship or design that would be insured, but for the exclusion.

  1. The obligation to insure under subsection (1) does not include insurance for damage to improvements made to a unit.

  1. For the purpose of this section, the question of what constitutes an improvement to a unit shall be determined by reference to a standard unit for the class of unit to which the unit belongs.

  1. A standard unit for the class of unit to which the unit shall be,

  1. the standard unit described in a by-law made under clause 56 (1) (h), if the board has made a by-law under that clause;

  1. the standard unit described in the schedule mentioned in clause 43 (5) (h), if the board has not made a bylaw under clause 56 (1) (h).

  1. Subject to a reasonable deductible, the insurance required under this section shall cover the replacement cost of the property damaged by the perils to which the insurance applies.

  1. Despite anything in an insurance policy issued under this section, no act of any person shall be deemed to be a breach of the conditions of the policy if the act is prejudicial to the interests of the corporation or the owners.

  1. An insurance policy issued under this section shall be deemed to include a clause that the insurer shall not terminate the insurance contract unless the insurer gives the corporation and the insurance trustee, if any, at least 60 days notice by registered mail.