In Ontario, the condo corporation’s insurance deductible is normally shared by all owners as a common expense. Under section 105 of the Condominium Act, 1998, it can be charged to one owner when an act or omission by that owner, their tenant or someone living in their unit damages the unit — and a corporation by-law can widen that to cases where nobody was at fault. Check your corporation’s by-laws and the deductible on its insurance certificate, then confirm your own condo policy will pay that amount.
Why this matters after this year’s storms
Water is the claim that turns a condo deductible from fine print into a bill. The Insurance Bureau of Canada (IBC) reported on October 14, 2026 that the September 2–3 storms in the GTA and southern Ontario caused an initial estimate of $563 million in insured damage, from rainfall, flash flooding, wind and hail. Earlier, the June 30–July 3 storms across Ontario and Quebec caused $439 million, and Ottawa officials reported more than 4,500 basement floods after a record-breaking 118 mm of rain on Canada Day.
Most chargebacks, though, start indoors: a toilet overflow, a washing machine hose or a slow leak under a sink. With more than 980,000 residential condo units in 13,595 corporations across Ontario (Condominium Authority of Ontario data as of March 31, 2026), it is worth knowing exactly who pays when water travels from one unit into another.
Who pays the condo insurance deductible in Ontario?
By default, everyone does. The corporation must insure the units and common elements against major perils (Condominium Act, s. 99). When a claim falls under that policy’s deductible, section 105(1) makes the uninsured portion a common expense — shared by all owners through their monthly fees.
Two exceptions follow in the same section. They are the reason a single owner can receive a bill for thousands of dollars.
The corporation’s policy also has limits on what it insures in the first place. The Condominium Authority of Ontario (CAO) says the corporation’s insurance covers only what is included in the “standard unit” as defined in its governing documents. Improvements — for example, upgraded flooring, custom cabinets or a renovated bathroom — are the owner’s to insure and repair.
Our Ontario condo insurance guide covers the rest of a unit owner’s policy; this article focuses on the deductible.
When can a condo corporation charge its deductible to you?
Section 105(2) applies when an owner, the owner’s tenant, or a person living in the unit with the owner’s permission or knowledge “through an act or omission causes damage to the owner’s unit.” The corporation then adds the lesser of the repair cost and its insurance deductible to that unit’s common expenses.
Two details are easy to miss:
- It is not limited to negligence. In Lozano v. TSCC No. 1765 (2020 ONSC 4583), the Ontario Superior Court accepted that the “act or omission” standard sits between negligence and strict liability, “perhaps closer to the latter.” The owners were found not negligent in general, yet the court upheld the chargeback. They had not had a plumber make thorough repairs, and the court said shutting off the water during their five-month absence would have been prudent. The repair bill, $5,473.63, was below the deductible, so the owners owed the repair cost.
- Your tenant’s actions count. The section expressly names a lessee of the owner, so a landlord can be charged for damage a tenant causes.
What does a condo deductible by-law change?
Section 105(3) allows a corporation to pass a by-law extending the circumstances in which the deductible is added to an owner’s common expenses. The section sets one condition: the damage must not have been caused by an act or omission of the corporation or its directors, officers, agents or employees.
In practice, the CAO notes that some corporations use such by-laws to make owners responsible even where no one is directly at fault, including damage with no clear cause. Its chargebacks guidance gives the example of a flood caused by one owner that damages several units, where that owner can be charged the lesser of the deductible or the repair costs.
So two identical leaks in two buildings can produce very different bills. Under the default rule, the corporation needs an act or omission and charges for damage to your unit. Under a broad by-law, the question may simply be where the water came from.
| Situation | Default rule (s. 105(2)) | With a deductible by-law (s. 105(3)) |
|---|---|---|
| What triggers a chargeback | An act or omission by the owner, tenant or resident | Whatever the by-law says, unless the corporation caused the damage |
| Fault needed? | Act or omission (no proof of negligence required, per Lozano) | Can be none, if the by-law says so |
| Maximum amount | Lesser of repair cost and the corporation’s deductible | Depends on the by-law’s wording; the CAO’s example uses the lesser of deductible or repair cost |
| Where to check | Condominium Act, s. 105 | Your corporation’s by-laws |
Does your condo insurance cover the corporation’s deductible?
It depends on the coverage, and the names vary between insurers. According to IBC, a unit owner’s policy typically covers personal property, additional living expenses and personal liability, and it can include:
- Improvements and upgrades made by you or previous owners, up to a stated limit
- Contingency coverage if the corporation’s insurance is insufficient
- Loss assessment coverage, which pays your share of major property and liability losses on common property, up to a stated limit and possibly subject to a deductible
A corporation deductible charged to you under section 105 is a specific risk. Ask whether your policy pays a deductible charged back to you by the corporation, what the limit is, and whether it applies when the corporation is relying on a by-law rather than on your fault. The CAO’s own guidance is to speak to an insurance broker about coverage for these situations.
Section 105 is separate from special assessments and loss assessments. Our posts on special assessments coverage and loss assessment coverage for condo owners cover costs shared across the building. This article covers a deductible charged to one unit.
How to check your condo deductible exposure
- Ask management for the corporation’s certificate of insurance. Note every deductible it lists, not just the first one.
- Read the by-laws. Look for a by-law about insurance deductibles or indemnification, and the standard unit by-law that defines what the corporation insures.
- List your improvements. Anything beyond the standard unit — flooring, kitchen, bathroom finishes — needs to be on your own policy.
- Compare limits. Your coverage for a charged-back deductible should be at least as high as the largest deductible you could be charged.
- Reduce the chance of a claim. Fix leaks properly, replace old supply hoses, and turn off the water if the unit will be empty for an extended period — the Lozano court pointed to that last step.
- Buying a condo? The status certificate, on Ontario’s prescribed form, attaches the declaration, by-laws, rules and a certificate or memorandum of insurance, and it discloses amounts the Act requires to be added to the unit’s common expenses. Read those pages before you firm up the deal.
What if you disagree with a chargeback?
The CAO says corporations should communicate chargebacks early and in writing, cite the section or by-law they rely on, and keep records. If you cannot pay, contact the corporation right away; it may agree to a payment plan.
Do not simply ignore the bill. A chargeback is added to your common expenses, and the CAO says a corporation automatically has a lien on a unit when common expenses go unpaid. That lien expires after three months unless the corporation registers a certificate of lien.
Repair and damage chargebacks are generally outside the Condominium Authority Tribunal’s jurisdiction, according to the CAO. Disputes go to the Superior Court of Justice or to private mediation or arbitration, so get legal advice early.
Renting out your condo?
Because section 105(2) covers damage caused by your tenant, a landlord carries the deductible risk for a tenant’s mistake. Confirm your own policy is written for a rented unit, and consider requiring tenant insurance in the lease. The CAO notes tenants are not legally required to carry it, but a tenancy agreement or the condo’s governing documents may require it. See our rental property insurance and tenant insurance pages.
Get your condo coverage reviewed
Send us your corporation’s certificate of insurance and deductible by-law with your current policy, and an AAXEL broker can check whether your condo insurance limits match what you could be charged. Request a quote or call-back.
FAQ
Who pays the condo corporation’s insurance deductible in Ontario?
Normally all owners do. Section 105(1) of the Condominium Act, 1998 makes the portion of a loss excluded by the corporation’s deductible a common expense, shared through condo fees. The exceptions are in sections 105(2) and 105(3).
Can my condo corporation charge me its deductible?
Yes, in two situations. Under s. 105(2), if you, your tenant or a resident of your unit causes damage to your unit through an act or omission, the lesser of the repair cost and the deductible is added to your common expenses. Under s. 105(3), a by-law can extend that to other circumstances.
Does the corporation have to prove I was negligent?
Not under the statute’s wording, which says “act or omission.” In Lozano v. TSCC No. 1765 (2020 ONSC 4583), the court upheld a chargeback against owners it found were not negligent in general, because incomplete plumbing repairs counted as an omission.
What is a deductible by-law?
It is a by-law passed under s. 105(3) that widens when the corporation’s deductible can be added to an owner’s common expenses. The Condominium Authority of Ontario says some by-laws make owners responsible even where no one is directly at fault. It cannot apply where the corporation, or its directors, officers, agents or employees, caused the damage.
Am I charged if water from my unit damages a neighbour’s unit?
It depends on your corporation’s by-laws. The CAO’s example is a flood caused by one owner that damages several units, where governing documents let the corporation charge that owner the lesser of the deductible or the repair costs. Check the by-laws and your policy limit.
Does condo insurance cover a deductible charged back by the corporation?
It can, but only if your policy includes that coverage, and names and limits vary by insurer. Ask your broker whether your policy pays a corporation deductible charged to you under s. 105, what the limit is, and whether it applies to by-law chargebacks with no fault.
What is the difference between a deductible chargeback and a special assessment?
A deductible chargeback is added to one unit’s common expenses under s. 105. A special assessment is charged across owners for a shortfall such as a large repair. Loss assessment coverage on a unit policy is aimed at your share of losses on common property.
Can my landlord be charged for damage I cause as a tenant?
Yes. Section 105(2) names a lessee of the owner, so the owner can be charged when a tenant’s act or omission damages the unit. The owner may then look to the lease, and a tenancy agreement or the condo’s governing documents may require tenant insurance.
What happens if I don’t pay a chargeback?
A chargeback is added to your common expenses. The CAO says a corporation automatically has a lien when common expenses go unpaid, which expires after three months unless a certificate of lien is registered. Contact the corporation early about a payment plan.
Where do I dispute a condo chargeback in Ontario?
The CAO says repair and damage chargebacks generally fall outside the Condominium Authority Tribunal’s jurisdiction. These disputes go to the Superior Court of Justice or to private mediation or arbitration. Get legal advice before you respond.
Sources
All fetched and read on October 20, 2026.
- Condominium Authority of Ontario – Insurance — corporation’s insurance duties (ss. 99, 102, 39), standard unit, owners’ deductibles, s. 105 reference
- CAO – How does condo insurance work — corporation covers the standard unit only; improvements; who pays the deductible; by-laws extending owner responsibility
- CAO – Repairs after damage — repair responsibilities; no-fault by-laws; deductible range “a few hundred dollars to tens of thousands”
- CAO – Chargebacks — s. 105(2) chargebacks, multi-unit flood example, process, lien, CAT jurisdiction
- CAO – Liens — automatic lien, three-month expiry, ss. 85–86
- CAO – Ontario’s condo sector by the numbers — 13,595 corporations; 980,834 residential units (as of March 31, 2026)
- Lozano v. TSCC No. 1765, 2020 ONSC 4583 — verbatim text of Condominium Act s. 105(1)–(3); “act or omission” standard; $5,473.63 chargeback upheld
- Ontario prescribed status certificate form (s. 76(1)) — attachments (by-laws, insurance certificate) and disclosure of amounts added to common expenses
- IBC – Types of home insurance coverage — unit owner policy coverages: improvements, contingency, loss assessment
- IBC release, October 14, 2026 — September 2–3, 2026 storms: $563 million insured damage (CatIQ initial estimate)
- IBC release, August 27, 2026 — June 30–July 3, 2026 storms: $439 million; Ottawa 118 mm and 4,500+ basement floods
- Condominium Act, 1998 on e-Laws — the official statute (link for readers; e-Laws would not render for verification, so s. 105 was checked against the text quoted in Lozano)
Disclaimer
This article is general information about Ontario condominium insurance and the Condominium Act, 1998, current as of October 20, 2026. It is not legal advice. Your obligations depend on your corporation’s declaration, by-laws and insurance policy, and on your own policy wording. For a dispute about a chargeback, speak to a lawyer; for coverage questions, speak to a licensed insurance broker.
