- If an owner, tenant or resident causes damage, the corporation must charge back the lesser of the repair cost and its insurance deductible.
- Owners are generally responsible for their own deductibles unless they or their guests damage common elements through direct action or negligence.
- By-laws can extend owner responsibility for the corporation's deductible, including where no one is at fault.
- Most repair and damage chargeback disputes go to mediation, arbitration or the Superior Court of Justice rather than the Condominium Authority Tribunal.
A leak or fire has damaged your unit or the building, the repairs are underway, and then a letter arrives from the corporation asking you to pay its insurance deductible. The amount may be a few hundred dollars or far more.
This article explains when a chargeback is generally allowed, how your building's by-laws can change the picture, where disputes go, and how to be ready.
What a deductible chargeback is
When the corporation claims on its insurance, it pays a deductible before the insurer pays. A chargeback is the corporation passing some or all of that cost to an owner. Deductibles can range from a few hundred dollars to tens of thousands.
Costs caused by an owner can generally be charged back to that owner. The rules differ depending on who caused the damage and what your by-laws say.
When you may have to pay
| Situation | What generally applies |
|---|---|
| You, a tenant or a resident caused the damage | The corporation must charge back the lesser of the repair cost and its deductible |
| You or your guests damaged common elements through direct action or negligence | You are generally responsible for the deductible |
| No one is at fault | Not generally charged to you, unless by-laws extend owner responsibility |
| Both you and the corporation claim for the same damage | Each usually pays its own deductible |
By-laws can extend owner responsibility for the corporation's deductible, including where no one is at fault. Reading your by-laws is therefore the first step. Whether someone was negligent is often the real dispute, and a lawyer can help assess it.
What if you disagree with the charge?
Where a dispute goes depends on the underlying issue. The Condominium Authority Tribunal handles chargebacks only where the underlying issue is within its jurisdiction, such as nuisance, parking, pets or condo records. Most repair and damage chargebacks go to mediation, arbitration or the Superior Court of Justice.
Compliance costs, such as legal letters, cannot be charged back without Tribunal or court permission. That is a separate matter from a deductible, but you may see both on the same demand, so look at each line.
- Ask the corporation in writing how it calculated the amount and which by-law or section it relies on.
- Ask for the insurance claim documents and the repair invoices.
- Keep photos, plumber or contractor reports and dates showing the cause of the damage.
- Do not ignore the demand. Charges that become part of unpaid common expenses can lead to lien consequences, so ask a lawyer how this applies to your charge before it builds up.
How to be ready before a loss
The CAO advises owners to take out their own property insurance, including cover for unit upgrades, personal belongings and non-standard parts of the unit. Your governing documents may require it.
Ask a broker whether your policy would respond to a deductible charged back to you by the corporation, and under what conditions. Do not assume it will. Also remember that improvements and non-standard elements are the owner's to insure and repair, and the corporation is generally responsible for repairing common elements and standard unit elements, subject to the governing documents.
What to do next
- Read the chargeback letter and note the amount, the date and the reason given.
- Find the by-law on deductibles and confirm whether it covers no-fault situations.
- Report the loss to your own insurer promptly if you have a policy.
- Gather photos, invoices and any plumber or contractor report on the cause.
- Contact the corporation in writing, and if the amount is large or the cause is disputed, speak with a lawyer before paying or refusing.
Frequently asked questions
Do I have to pay the condo's deductible if I did nothing wrong?
Owners are generally responsible for their own deductibles unless they or their guests damage common elements through direct action or negligence. However, by-laws can extend owner responsibility for the corporation's deductible, including where no one is at fault. Check your by-laws.
How much can the corporation charge me?
If an owner, tenant or resident causes damage, the corporation must charge back the lesser of the repair cost and its deductible. Deductibles can range from a few hundred dollars to tens of thousands.
Can I take a chargeback dispute to the Condominium Authority Tribunal?
Only where the underlying issue is within its jurisdiction, such as nuisance, parking, pets or condo records. Most repair and damage chargebacks go to mediation, arbitration or the Superior Court of Justice.
What if my unit and the common elements are both damaged?
When an owner and the corporation both claim for the same damage, each usually pays its own deductible. The details depend on your by-laws and the facts.
Sources
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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