- Corporations must be insured against major perils including fire and water leaks, but that insurance does not cover improvements or non-standard elements of units.
- If an owner, tenant or resident causes damage, the corporation must charge back the lesser of the repair cost and its insurance deductible.
- Who is at fault is decided under your declaration, the Act and general law, so the facts matter.
- Most repair and damage chargeback disputes go to mediation, arbitration or the Superior Court of Justice, not the Condominium Authority Tribunal.
You come home to a stained ceiling or water running down your walls, and the source is the unit above. You need to know who is responsible, whose insurer to call and how to avoid ending up paying for someone else's mistake.
There is no single answer, because it depends on what was damaged, what caused the leak and what your building's documents say. This article sets out the rules that generally apply and the practical steps to take.
Three layers: the corporation, you and your neighbour
Condo corporations are generally responsible for repairing damage to common elements and standard unit elements. Section 90 of the Act sets how maintenance obligations are divided, and governing documents can alter them. Corporations must also be insured against major perils including fire and water leaks.
The corporation's property insurance does not cover improvements or non-standard elements of units. Anything outside the standard unit definition is an improvement, and the owner is responsible for insuring and repairing it. Walls, doors and plumbing are generally part of the standard unit, while appliances and flooring are generally owner improvements.
| Damaged item | Who generally deals with it |
|---|---|
| Common elements and standard unit elements such as walls | The corporation, subject to the governing documents |
| Flooring, appliances and renovations | The owner, through their own insurance |
| Furnishings and personal belongings | Generally not part of the standard unit, so the owner's insurance |
Who is at fault, and what the corporation can charge back
Whether your neighbour is liable depends on how the leak happened. Fault and negligence are decided under the declaration, the Act and general law, so a burst pipe in a common wall and a overflowing bathtub left running can lead to different outcomes.
If an owner, tenant or resident causes damage, the corporation must charge back the lesser of the repair cost and the corporation's insurance deductible. By-laws can extend owner responsibility for the corporation's deductible, including where no one is at fault.
Deductibles can range from a few hundred dollars to tens of thousands. When an owner and the corporation both claim for the same damage, each usually pays its own deductible.
Whose insurance responds
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. Governing documents may require it. After a leak, you will usually need to look at two policies: the corporation's and your own.
- The corporation's policy is aimed at the standard unit and common elements.
- Your policy is where upgrades, belongings and non-standard parts of the unit are generally dealt with.
- Owners are generally responsible for their own deductibles unless they or their guests damage common elements through direct action or negligence.
Your neighbour's insurer may also be involved if they are found responsible. Whether that happens depends on the facts and policy wording, and a lawyer or your insurer can help you sort that out.
If there is a dispute
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.
If the corporation adds an unpaid chargeback to your common expenses, ask what the charge is for before paying or disputing it. Unpaid common expenses can lead to a lien. A lien dispute linked to repair charges must be taken to the Superior Court of Justice.
What to do next
- Stop the water if you safely can, and report it to the property manager or board right away.
- Photograph and video the damage, the source if visible, and your belongings before moving or cleaning.
- Keep receipts for emergency repairs, drying, and temporary living costs.
- Notify your own insurer promptly and ask what they need.
- Request your building's declaration, by-laws and standard unit definition.
- Ask the corporation in writing for its incident report, its insurer's claim number and any deductible chargeback it plans to make.
- Get legal advice if fault is disputed or the charges are large.
Keep all communication in writing, with dates. Once you know what was damaged and what caused it, a lawyer can explain how your documents apply to your situation.
Frequently asked questions
Is my upstairs neighbour automatically liable for the leak?
No. Liability depends on the cause of the leak and the facts, and is decided under your declaration, the Act and general law. The rules on chargebacks apply where an owner, tenant or resident causes damage.
Will the condo corporation's insurance cover my flooring?
Probably not. Flooring is generally an owner improvement, and the corporation's property insurance does not cover improvements or non-standard elements of units. Check your standard unit definition, which varies by building.
Do I have to pay a deductible?
Often each party pays its own deductible when both the owner and the corporation claim for the same damage. Owners are generally responsible for their own deductibles, and by-laws can extend responsibility for the corporation's deductible.
Can I take the dispute to the Condominium Authority Tribunal?
Usually not for repair and damage claims. The Tribunal handles matters such as nuisance, parking, pets or records, and most repair and damage chargebacks go to mediation, arbitration or the Superior Court of Justice.
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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