Property Damage Not Peril Under Multi-Peril Insurance Policy

Recently, Alberta's Court of Queen's Bench held a multi-peril contract of insurance did not cover damage sustained to the structural integrity of a parkade. In Condominium Corporation No. 9312374 v Aviva Insurance Company of Canada, 2018 ABQB 674, faulty workmanship resulted in damage to the structural integrity of a parkade. A claim for indemnification was made by the Condominium Corporation (the "Insured") and denied by Aviva. The Insured brought an action in an attempt to secure coverage and an Application was heard before Master Prowse as to whether the Insured's policy excluded the damage plead in its Statement of Claim. Master Prowse ultimately decided the Insured's policy covered the damage plead notwithstanding an exclusionary clause (reproduced below) providing said policy did not insure "the cost of making good ... faulty or improper workmanship." Aviva appealed Master Prowse's decision.