Property
Find it: Summary of Coverages, first section, headed Property with an Appraisal Date.
All Property, Blanket By-Laws, Stated Amount Co-Insurance, Replacement Cost, Heritage Clause Exclusion
Plain language The main cover for the buildings and common property. It is one dollar limit shared by all the buildings. Each word is a feature. Blanket means one limit for everything, not a limit per building. By-Laws means it helps pay the extra cost of rebuilding to meet current building codes and municipal by-laws (not your strata bylaws). Stated Amount Co-Insurance means the insurer has agreed to the value shown, so a penalty for under-insuring is normally avoided if that value is kept up to date. Replacement Cost means it pays to replace with new, not for the depreciated value. Heritage Clause Exclusion means special heritage rebuilding terms are not part of this line; a heritage building may be listed separately.
Technical Blanket limit of insurance on the building and betterments; building by-law (ordinance or law) extension; stated amount (agreed value) endorsement waiving the co-insurance clause; replacement cost valuation basis; heritage clause excluded.
May also be called: Building limit; property limit; total insured value (TIV); replacement cost value
150% Extended Replacement Cost (ERC)
Plain language Extra room if the real cost to rebuild turns out higher than the insured value, for example when prices jump after a big event. It is a cushion, not a second policy.
Technical Extended replacement cost endorsement, usually 125%, 150% or more of the limit, applied when actual repair cost exceeds the stated value.
May also be called: Extended replacement cost; ERC; additional cost cushion; inflation guard
Total Available Limit Including 150% Extended Replacement Cost
Plain language The base limit plus the extra 50% cushion, shown as one total. It is 1.5 times the base limit.
Technical Base limit multiplied by 1.5, the maximum the insurer may pay under the property cover.
May also be called: Maximum available limit; total limit with ERC
Property Extensions – Annually Aggregated
Plain language Small extra covers added on to the property cover, each with its own limit. “Annually aggregated” means the limit is a yearly total, not per claim.
Technical Extensions of coverage subject to an annual aggregate limit.
May also be called: Additional coverages; coverage extensions
Lock & Key
Plain language Pays to re-key or replace locks and keys if they are lost or stolen, after a deductible.
Technical Extension covering the cost of replacing locks and keys, subject to a stated deductible and limit.
May also be called: Keys and locks
Additional Living Expenses – Per Unit and Annual Aggregate
Plain language If an insured loss makes a unit unliveable, this helps pay hotel and similar costs for owners. There is a limit for each unit and a yearly cap for the whole strata.
Technical Additional living expense extension with per-unit and annual aggregate limits.
May also be called: ALE; loss of use; temporary accommodation; relocation costs
Excess Property Extensions – excludes earthquake
Plain language More room for the extensions above, with one important exception: it does not apply to earthquake damage.
Technical Excess limit for property extensions with the peril of earthquake excluded.
May also be called: Excess extensions; excess limit for extensions
Miscellaneous Equipment – Schedule of Equipment
Plain language Equipment the strata owns that is listed on a separate schedule and insured for the amount shown.
Technical Scheduled equipment floater or schedule of insured equipment within the property cover.
May also be called: Contents; equipment schedule; strata-owned equipment
All Risks
Plain language Covers damage from any cause that is not specifically excluded, such as fire, wind or theft. The deductible is what the strata pays for each claim first. Several perils below (water, sewer, earthquake, flood) have their own deductibles.
Technical “All risks” (open perils) coverage basis with a per-claim deductible.
May also be called: All perils; open perils; fire and other perils; standard deductible
Sewer Backup
Plain language Pays for damage when a sewer or drain backs up into the building. It has its own deductible and is often the same or higher than water damage.
Technical Sewer backup peril with a separate deductible and, often, a sub-limit.
May also be called: Drain backup; sewer back-up
Water Damage
Plain language Pays for damage from water escaping from plumbing or heating systems, such as a burst pipe. Check your policy for how it treats slow leaks and flooding from outside.
Technical Water damage peril with its own deductible, subject to the policy’s exclusions for gradual leakage and overland flood.
May also be called: Escape of water; water escape; leakage; burst pipe
… “With respect to Heritage building located at …”
Plain language When a policy has a heritage building, that building can have its own, often lower, deductibles. The lines repeat with the building’s address.
Technical Location-specific deductibles for a scheduled heritage building.
May also be called: Heritage deductible; location deductible
Earthquake Annual Aggregate (excluding 150% ERC)
Plain language The earthquake line. The deductible is a percentage, such as 10%, with a minimum dollar amount. The limit is the most the insurer pays for all earthquake claims in one year, before the extra 150% cushion. See the Earthquake Deductible Calculator.
Technical Earthquake peril with a percentage deductible subject to a minimum, and an annual aggregate limit exclusive of the extended replacement cost.
May also be called: Earthquake deductible; seismic deductible; earthquake sub-limit
150% ERC – Earthquake Annual Aggregate, and Earthquake Annual Aggregate (including 150% ERC)
Plain language The extra cushion for earthquake, and the total once it is added to the base limit.
Technical Extended replacement cost applied to the earthquake aggregate; combined limit.
May also be called: Earthquake ERC; total earthquake limit
Flood Annual Aggregate (excluding / including 150% ERC)
Plain language Flood from outside water, such as a river or heavy rain. It has its own deductible and a yearly limit. It is separate from water damage from a burst pipe.
Technical Flood (overland water) peril with an annual aggregate limit and its own deductible; ERC applied to the aggregate.
May also be called: Overland water; flood sub-limit
Business Interruption (Gross Rentals), Co-Insurance, Indemnity Period
Plain language Pays lost rental income if the building cannot be used after an insured loss. On the sample document it says Not Covered, which means this protection is not included.
Technical Business interruption (gross rentals) coverage with a co-insurance percentage and an indemnity period in months; shown as not covered.
May also be called: Loss of rents; rental income; loss of income
Commercial General Liability (CGL)
Find it: A section headed Commercial General Liability.
Bodily Injury and Property Damage
Plain language If someone is hurt, or their property is damaged, and the strata is found legally responsible, this pays the damages and the legal defence, up to the limit. Examples are a slip on an icy walkway or a leak from common property into a neighbouring building.
Technical Third-party liability for bodily injury and property damage arising from the strata’s operations or premises, per occurrence.
May also be called: CGL; general liability; public liability; third-party liability
Non-Owned Automobile
Plain language Covers the strata when someone drives a car the strata does not own on strata business, such as a volunteer running an errand.
Technical Non-owned auto liability, usually excess over the driver’s own insurance.
May also be called: Hired and non-owned autos; non-owned auto
Infectious Agent or Communicable Disease Exclusion
Plain language The liability cover does not respond to claims arising from infectious disease, with a few limited exceptions listed in the form.
Technical Communicable disease exclusion endorsement, with limited exceptions as set out in the form number shown.
May also be called: Communicable disease; virus exclusion
Total Pollution Exclusion
Plain language The liability cover does not respond to pollution claims. Pollution has its own separate cover further down the page.
Technical Total pollution exclusion; pollution liability is provided separately.
May also be called: Pollution exclusion
Directors and officers
Find it: A section headed Condominium Directors & Officers Liability.
Claims Made Form, including Property Manager
Plain language Protects council members, and in this case the property manager, if they are sued for a decision made in their role. Claims made means the cover applies to claims first made during the policy period, not just events that happened then.
Technical Directors and officers liability on a claims-made-and-reported basis, extended to the property manager.
May also be called: D&O; council liability; management liability; errors and omissions for council
Human Rights Defense Costs
Plain language Helps pay legal costs if there is a human rights complaint against the strata or council. The line notes it can include punitive or exemplary damages where the law allows.
Technical Extension for defence of human rights proceedings, including coverage for punitive or exemplary damages where insurable.
May also be called: Human rights complaint cover
Privacy Event Expenses and Cyber Liability – Not Applicable
Plain language On this sample these two lines are not covered under the D&O section. The strata has a separate cyber policy listed at the end of the document.
Technical Privacy event expense and cyber liability shown as not applicable under this section.
May also be called: Privacy breach; data breach
Equipment breakdown
Find it: A section headed Equipment Breakdown.
Standard Comprehensive Form, including Production Machines and Electronic Equipment
Plain language Pays when building equipment such as boilers, pumps, elevators and electrical systems suddenly breaks down because of a mechanical or electrical failure. It does not pay for normal wear and tear.
Technical Comprehensive equipment breakdown (boiler and machinery) form, including production machines and electronic equipment.
May also be called: Boiler and machinery; mechanical breakdown; electrical breakdown
Deductible Waiver Endorsement
Plain language On this sample, the deductible does not apply once the loss is more than $25,000. It is an add-on that can make a big loss cheaper for the strata.
Technical Deductible waiver endorsement applying for losses exceeding the stated amount.
May also be called: Waiver of deductible
Extra Expense, and Additional Living Expenses Endorsement
Plain language Pays extra costs to keep things running, for example renting temporary equipment, and living costs for owners if a breakdown makes units unliveable. There can be a short waiting period before it starts.
Technical Extra expense and additional living expense extensions with a waiting period and limits per unit and in the annual aggregate.
May also be called: Expediting expense; temporary equipment; ALE
Loss of Profits – Rents
Plain language Lost rental income after a breakdown. On the sample it is not covered.
Technical Loss of profits (rents) cover shown as not covered.
May also be called: Loss of rents
Cyber, data and privacy
Find it: A section headed Cyber, Data & Privacy.
Aggregate Policy Limit, and Aggregate Certificate Limit
Plain language There are two limits. One is the most the insurer pays in a year for all the strata plans insured under the same program. The other is the most for your strata. Large programs share one big limit among many buildings.
Technical Program (policy) aggregate limit shared by all subscribers, and certificate aggregate limit per named certificate holder.
May also be called: Master policy limit; certificate limit
Liability coverages A.1 to A.3 (Security, Privacy, Regulatory Proceedings)
Plain language Protects the strata if it is blamed for a data breach or a privacy mistake, and pays for regulatory investigations.
Technical Third-party cyber liability: network security liability, privacy liability and regulatory proceedings.
May also be called: Third-party cyber; privacy liability
First party coverages B.1 to B.5 (Breach Costs, Extortion, Digital Asset Replacement, Social Engineering Fraud)
Plain language Pays the strata’s own costs after a cyber event: notifying people, a ransom demand, restoring data, or being tricked into sending money to a fraudster (social engineering).
Technical First-party cyber: breach response costs, cyber extortion, digital asset replacement and social engineering funds transfer fraud, each with its own sub-limit.
May also be called: First-party cyber; ransomware; funds transfer fraud
