Condo Water Damage in Ontario: Who Pays and What to Do First

Condo water damage in Ontario is usually paid in layers, so the answer to “who pays” is rarely one person. The corporation’s insurance generally covers the unit up to the “standard unit” and the common elements, your own policy covers upgrades and belongings, and the corporation’s deductible can be charged back to the unit owner whose unit the damage started in if that owner, their tenant or an occupant caused it.

Which layer pays what depends on three documents (your declaration, the standard unit by-law and the insurance deductible by-law) plus the facts of the leak. This guide explains how those pieces fit together under the Condominium Act, 1998, what to do in the first few hours so your position stays clear, and where people get caught. It is general information, not legal advice.

Condo water damage: who pays in Ontario, the short answer

The Condominium Act, 1998 sets the default rules. Section 99 says the corporation must insure the units and common elements against “major perils”, and the Act’s definition of major perils includes water escape. Section 89 says the corporation repairs the units and common elements after damage, but not improvements made to a unit. Section 90 says owners maintain their own units and the corporation maintains the common elements.

Then two things change the picture:

• The standard unit. What counts as an “improvement” is measured against a standard unit for your type of suite. Anything beyond it is generally the owner’s to repair and insure.
• The deductible. Section 105 says the part of a loss that falls under the corporation’s deductible is a common expense, unless the owner (or a lessee or occupant) caused the damage through an act or omission. In that case the owner can be charged the lesser of the repair cost or the deductible.

A declaration can also rearrange repair duties. Section 91 allows a declaration to say, for example, that each owner repairs their own unit after damage. So the first practical step in any condo leak is getting copies of the documents, not arguing about fault.

What to do first, before anyone talks about money

The steps you take in the first hours don’t decide who pays, but they decide how easy it is to prove what happened. A missing photo or a fuzzy timeline can turn a simple claim into a long argument.

1. Make it safe. Stay away from water near outlets, light fixtures or a sagging ceiling. Only switch off a breaker if you can reach the panel while standing on a dry floor.
2. Call the building. Security, the concierge or the management emergency line can get into the unit above and shut off risers or valves. The Condominium Authority of Ontario (CAO) notes that in emergencies such as a water leak, immediate access to a unit may be required without notice.
3. Photograph before you move anything. Wide shots of each room, close-ups of stains and drips, and the source if you can see it safely.
4. Report in writing the same day. An email to management with the time, the location and the units involved creates a record everyone works from.
5. Call your own insurer or broker. Even if you think the building will handle it, your policy may have notice requirements.
6. Keep the failed part. A cracked supply line or failed valve is evidence. Ask management to keep it or photograph it before it’s thrown out.

If water is coming through your ceiling right now, our step-by-step guide to water leaking from the condo above you walks through each of these in order.

The standard unit by-law: where the corporation’s repair duty stops

The standard unit is the dividing line between what the corporation fixes and what you fix. Under section 89 (4) and section 99 (6) of the Act, the standard unit is whatever is described in a by-law the board passed under clause 56 (1) (h). If the board never passed one, it is the standard unit schedule that came with the declaration.

The CAO’s repairs after damage page puts it simply: corporations repair common elements and standard unit elements, and owners handle decorative and non-standard elements. Anything not listed in the standard unit definition is treated as an improvement.

What a standard unit by-law typically lists

Every building’s by-law is different, but they usually describe the builder’s original finishes by type and grade. Common entries include:

• Drywall, insulation and paint to a basic standard
• Flooring of a stated material and grade (often builder-grade laminate, carpet or tile)
• Kitchen and bathroom cabinets, counters and fixtures of a stated grade
• Baseboards, interior doors and trim
• Original appliances in some buildings, excluded in others

Why this matters after a leak

Picture a suite where the builder installed laminate and a later owner put in engineered hardwood. If a pipe in the common elements leaks and soaks that floor, the corporation’s insurance typically pays to replace the floor at the laminate standard. The difference up to hardwood is the owner’s, which is exactly what an owner’s condo policy is meant to cover.

Two traps come up often. First, buyers rarely know what a previous owner changed, so they don’t realize the hardwood is an “improvement” until after a loss. Second, some by-laws describe the standard unit in very bare terms, which pushes more of the repair onto owners. Ask your manager for the current by-law and compare it to what is actually in your suite.

The Section 105 deductible chargeback

This is the part of condo water damage that surprises owners most. The corporation’s policy has a deductible, and in many buildings the water deductible is far higher than anything on a typical home policy. Section 105 decides who absorbs it.

Here is what the Condominium Act, 1998 says, in plain terms (as consolidated on Ontario’s e-Laws site when we checked in October 2026):

What “act or omission” means in practice

An act might be leaving a tub running. An omission might be ignoring a dripping washing machine hose for weeks. The default rule in 105 (2) is tied to someone in that unit doing, or failing to do, something.

The by-law in 105 (3) is where many buildings go further. CAO guidance notes that corporations can update their governing documents to include additional scenarios where owners pay. Some insurance deductible by-laws say the owner pays whenever the damage started in their unit or in equipment serving only their unit, whether or not anyone was careless. If your building has a by-law like that, a burst dishwasher line can lead to a chargeback even though nobody did anything wrong.

How large the number can get

Water deductibles vary building to building. As a real-world example, CTV News reported in February 2023 on an Etobicoke condo owner who was billed roughly $27,000 after a flood because of the building’s high deductible. Your building’s figure could be lower or higher. The only reliable number is the one in the current insurance certificate or notice from your corporation.

Section 105.1 requires the board to send owners notice of insurance information as set out in the regulations. Keep those notices, and read them when they arrive, because a deductible increase is easy to miss.

Paying, disputing and insuring

The CAO says that if an owner doesn’t pay a chargeback, the corporation automatically has a lien on the unit, the same as for unpaid common expenses. Disputes go to the Condominium Authority Tribunal only where the issue is within its jurisdiction. Everything else goes to the Superior Court of Justice or to private mediation or arbitration.

Because 105 (4) makes the chargeback an insurable interest, many owner policies offer coverage often called “deductible assessment” or “loss assessment.” Limits vary a lot. Ask your broker for the exact amount you’re covered for, then compare it to your building’s water deductible.

Responsibility scenarios: a general guide

The table below shows how responsibility often falls in common situations. It’s a simplified, informational guide to the default rules, not legal advice. Your declaration, by-laws and policies can change any row.

Notice the column for the upstairs owner. Section 105 (2) is about damage to the owner’s own unit, and many corporations rely on a by-law under 105 (3) to reach damage that spreads to other units and common elements. That is why the by-law matters so much more than most owners expect.

Renting out a condo, or renting one

If you own a condo and rent it out, Section 105 (2) treats your tenant’s act or omission the same as your own. The corporation charges you, not the tenant. What you can then recover from the tenant is a separate question under Ontario’s Residential Tenancies Act.

If you’re the tenant, your belongings are not covered by the corporation’s insurance or your landlord’s policy. Tenant insurance is how contents and personal liability are usually covered. We cover this in detail in tenant or landlord: who pays for water damage in Ontario, including how the Landlord and Tenant Board fits in.

Records that keep the “who pays” question clear

Responsibility follows the source and the documents, so the record you build in the first week carries a lot of weight. Good documentation helps every party: the owner below, the owner above, the corporation and the insurers.

1. A timeline. When the leak started, when it was reported, when it was stopped.
2. Source evidence. Photos of the failed part, a plumber’s or contractor’s written note on the cause, and the failed part itself if possible.
3. Room-by-room photos. Before cleanup, during drying and after repairs.
4. Moisture readings. A restoration contractor records readings in walls, floors and ceilings until materials are dry, which shows the extent of damage objectively.
5. Separate scopes. The repair scope should split standard unit work from improvements, so each insurer prices only its part.

That last point is where condo jobs differ from houses. On our condo and commercial restoration work, each affected suite gets its own scope and photo set so the corporation and each owner are working from the same facts.

What does not work

A few common reactions make condo water losses harder to resolve.

Assuming the upstairs owner pays everything. Ontario’s condo framework doesn’t work like a simple fault claim. The corporation’s policy usually repairs standard unit elements, and the upstairs owner’s exposure is generally capped at the deductible. Your own upgrades and contents are typically on your own policy first, and insurers may sort out recovery between themselves.

Starting demolition before anyone has seen it. Emergency drying shouldn’t wait, but tearing out cabinets or flooring before management and the insurer have documented them can create arguments later about what was there and what was damaged.

Relying on verbal reports. A conversation with the concierge isn’t a record. An email is.

Waiting to call your own insurer. Even when the building’s policy is likely to respond first, your insurer needs to know early.

Drying a ceiling or wall cavity with household fans. Fans move surface air. They don’t dry wet insulation or the inside of a wall, and hidden moisture is what leads to mould. If you’re unsure whether damage is still active inside a wall, our guide to signs of water damage behind walls covers what to look for.

When to get outside help

Most small condo leaks are settled by management, two insurers and a contractor without anyone needing a lawyer. Get advice when the stakes or the uncertainty go up: a chargeback near the full deductible, a disputed source, a by-law that seems to conflict with the Act, or a delay that’s leaving your unit wet.

For questions about condo rules and disputes, the Condominium Authority of Ontario publishes guides and runs the Condominium Authority Tribunal. For coverage questions, your broker can read your policy against the corporation’s certificate. If your suite needs drying or repairs, start with the WDR Mississauga home page to see how we work with property managers and owners across Mississauga.