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We recently hosted a packed webinar with Lesley Desmarais, VP, Client Executive, and Team Leader at BFL Canada. She is a well known subject matter expert with many years of real estate insurance expertise, including a focus on condominium corporations in Alberta.

This session was aimed at helping condo boards, owners, and managers better understand the complexities of condo insurance, recent legislation changes, and how responsibilities are divided between unit owners and corporations.

Lesley Desmarais brings more than three decades of insurance experience, including 24 years dedicated to the realty sector and over a decade focused exclusively on condominium corporations. She joined BFL Canada in 2014 and quickly advanced from Client Service Manager to Client Executive in 2019, and then to Vice President, Client Executive, in 2023. In her current role, Lesley oversees client service, business development, and team mentorship, with a strong commitment to education. She regularly presents at industry events, board meetings, AGMs, and owner information sessions. Known for her relationship‑building, problem‑solving, and client‑first approach, Lesley is passionate about collaboration and being part of a high-performing, supportive team.

About BFL Canada

BFL Canada is a privately owned, fully independent insurance brokerage founded in 1987 and headquartered in Canada. With offices across the country, BFL operates coast‑to‑coast and is proudly 100% Canadian‑managed and employee‑owned. The company is built around specialized niche teams rather than generalists, allowing staff to develop deep expertise in specific sectors, including one of the largest dedicated condominium insurance teams in the country. This focus on specialization ensures clients receive knowledgeable guidance, tailored risk management, and industry‑leading service supported by a team of approximately 30 professionals in the condo division alone.

Magnum York is proud to have BFL Canada as its exclusive insurance broker. Through this partnership and our portfolio subscription we have been able to find save our mutual clients thousands of dollars in premiums and claims costs over the years. Their program also provides better coverage and far more support that other policies in the market. BFL would be happy to provide a coverage comparison to your existing policy.

Understanding the Condo Corporation’s Policy

Navigating condo insurance can feel overwhelming, especially when trying to understand where the corporation’s responsibilities end and the unit owner’s begin. Lesley broke down these complexities by explaining how the Alberta Condominium Act outlines the corporation’s obligation to insure the entire building, including all units, common property, and original developer-installed fixtures. This foundation is essential because it determines how claims are handled, who repairs what after a loss, and what coverage must be in place to protect both the building and its residents.

Corporations are responsible for insuring:

  • All units (as defined by floors, walls & ceilings)
  • Common property
  • Common assets
  • Original fixtures installed by the developer
  • All perils required by legislation: water, fire, sewer backup, wind, hail, etc.

Lesley noted that the corporation’s bylaws provide additional clarity and can modify how responsibilities are applied in practice.

Myths & Facts About Condo Insurance

To help clear up the most common misunderstandings, we’ve included a short video in which Lesley breaks down the top myths and facts about condo insurance and what they really mean for both corporations and unit owners.

What Unit Owners Are Responsible For

Lesley then shifted into what unit owner insurance should cover. A helpful analogy she uses is:

“If you flip your unit upside down, anything that falls out is the unit owner’s responsibility.”

This includes:

  • Personal belongings (contents, clothing, electronics, etc.)
  • Additional living expenses (if you must leave during repairs)
  • Improvements & betterments (depending on bylaws)
  • Condo deductible assessments (especially since the 2020 regulation changes)
  • Personal liability
  • Rental income (for landlords)

She also explained the Standard Insurable Unit Description (SIUD) rules introduced in 2020, define the “base unit” so repairs are clear and consistent.

Deductibles & Chargebacks: What You Need to Know

One of the most important clarifications was around the corporation’s ability to charge back the deductible to a unit owner when a loss originates in that owner’s unit.

Lesley explained:

  • The maximum chargeback the lesser of the corporation’s deductible or $50,000.00
  • Negligence does not need to be proven
  • There are three situations where a chargeback is not permitted:
    • Damage caused by construction defects
    • Damage caused by the corporation or its contractors
    • Normal structural deterioration of common property

Who Repairs What? Clarifying Responsibilities

Lesley referenced Section 47.6 of the Alberta Condominium Act to explain:

Corporations MUST:

  • Make or manage repairs to units and finishing elements when insured damage occurs
  • Ensure repairs are handled properly, no “Uncle Larry the handyman” shortcuts

Corporations are not responsible for:

  • Repairs to betterments and improvements (unless bylaws say otherwise)

She emphasized that proper management prevents future issues such as mold, asbestos exposure, or incomplete remediation.

What To Do When There’s Damage

  1. Address the emergency immediately (e.g., shut off water, call 911 if needed)
  2. Notify your property management company
  3. Notify your personal insurance provider
  4. Understand that not all incidents become formal insurance claims. Your Property Manager, Board and BFL Canada can help you determine next steps.

Q&A

Q: If I install a bidet and it leaks while I’m away, am I responsible for the damage?
A: The corporation repairs the water damage, but because the loss originated in your unit, you may be charged back up to the corporation’s deductible. Your own unit‑owner policy should cover that deductible chargeback. Damage to the bidet itself falls under your personal insurance, depending on bylaws.

Q: How does BFL handle Airbnbs in condo units?
A: BFL’s Condo Protect policy does not exclude short‑term rentals, but bylaws should clearly address whether Airbnbs are permitted. Boards may need to update or strengthen their bylaws if they want restrictions.

Q: Should tenant insurance match the condo corporation’s deductible?
A: No. Tenants need liability coverage, not matching deductibles. If a tenant causes a loss, their liability policy can be pursued for the full amount of the damage.

Q: What makes a condo building a “preferred risk” to insurers?
A: Strong maintenance practices, regular inspections, proactive repairs, good communication with owners, and a clear risk‑mitigation plan. Insurers also review reserve fund studies and appraisals to assess upkeep and future planning.

Q: Can unit owners buy insurance for pests like mice or bedbugs?
A: Typically, no. Pest issues are generally excluded from personal insurance. Owners should speak to their personal-lines broker for specifics.

Q: Does sharing our new reserve fund study help with renewal?
A: Yes. Updated reserve studies demonstrate planning, maintenance, and upcoming improvements, which can strengthen your underwriting profile.

Q: Do insurers track the difference between corporation‑paid and owner‑paid losses?
A: Only losses formally submitted to the insurer affect the corporation’s loss history. Incidents handled privately or by a unit owner’s insurer do not appear on the corporation’s record. Generally insurers do not include who pays as part of the profile.

Q: How long does a past claim affect premiums?
A: Claims remain on the corporation’s loss history for five years. The impact typically decreases over time, especially if no new losses occur and the board takes steps to prevent recurrence.

Q: What upgrades improve a building’s risk profile over the next 5 years?
A: This depends on the specific building, but insurers look closely at aging roofs, building envelope issues, mechanical systems, electrical systems, and balcony or exterior repairs. Documented maintenance programs also help.

Q: Does BFL offer group discounts for unit‑owner policies?
A: BFL partners with Square One to offer unit owners a $50 discount when they bind coverage. Additional programs exist for landlords and tenants.

Q: Are there client programs to help mitigate losses?
A: BFL does not have a formal program but provides risk‑mitigation resources, seasonal tips, and educational materials. Magnum York also offers tools and guidance.

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Author

Jessica Davies

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