Condo Unit Owner
Whether you own a condominium or you own a house, you need insurance to protect your property and yourself. However, the policy for each differs greatly. If the place you call home happens to be a condo, you need to be aware of these important differences.
In condominiums, there is separate ownership of each unit and common ownership of the shared property (parking garage, recreation spaces, lobby & elevators).
In broad terms, there are primarily 2 main aspects to insurance for a condominium:
- The Condominium Corporation’s insurance policy insures the structure of the building, shared common spaces, standard unit fittings in each of the units, and general liability.
- Your Personal condo insurance policy will insure any improvements made to your specific unit, your personal contents and your personal liability. In addition, because the common areas are shared by all unit holders, as a condo unit owner you have a responsibility for these areas as well and other shared risks.
Although not mandatory, you should consider a Personal Condominium Unit Owners insurance policy for more comprehensive protection.
Some Essential Coverages Blair Insurance Experts Recommend to Fully Protect Your Condo:
- Liability coverage
- Personal Property coverage
- Improvements and Betterments coverage
- Loss Assessment coverage
- Unit Additional Protection
- Additional Living Expense coverage
Remember that the condo Corporation’s master policy typically only covers insurance for the structure of your condominium building, it’s common elements and general liability, leaving you exposed. In the event that the master policy does not cover all expenses after a claim for damage then you, as a unit owner, can be assessed a fee to make up the difference for damage to common areas or make up part of the building’s deductible.
If, for example, there is a claim due to a fire in the luxurious recreation centre, the condominium’s policy may only pay up to their fixed coverage limit, and then the unit owners will be assessed and responsible for their share of the balance. This is known a Loss Assessment, and depending on the insurer, different coverage amounts may be available.
Your Broker at Blair Insurance will review the options and specific terms which different insurance companies offer and help you make an informed decision, so that you get the most comprehensive policy for your money.
Improvements and Betterments
In the event of damage to your unit, the condo Corporation is only responsible for replacing what comes in a standard unit. We recommend that you obtain a copy of the Corporation’s by laws as it should contain the definition of what is considered a “Standard Unit”. You might be surprised to find in some condominium’s definitions, fittings such as countertops or flooring is not included! Also, when moving into a previously owned unit, check for improvements or upgrades which may have been done to the unit to ensure they will be properly covered.
Unit Additional Protection
Unit Additional Protection is another vital form of coverage specifically designed for condo owners. This coverage will protect your unit for damage if the condominium corporation’s policy covering the building structure has lapsed or is inadequate. This coverage will pay up to the coverage limit selected.
Condo Insurance Simplified
There is a lot of complexity around properly protecting your condo unit and to mitigate against all the risks that come with it. You should insure what is yours as well as protect against your exposure to shared risks. Speak with one of our expert advisors for tips on how best to insure yourself. We’ll break down for you what you need and make navigating to get the right protection simple, providing you with peace of mind.