A Little Bit Different
Condo insurance is unique from any other type of insurance because of the ownership structure is different than a house, or rented dwelling. You own the unit, but the Corporation owns the building and the common areas such as stairwells, hallways and any amenities offered by the building. So how does it all work? Let us help you choose the right coverage for your unit, to ensure you are properly insured.
How Does Condo Insurance Work?
Every Condo is slightly different depending on the Condominium agreement. You may be responsible for any upgrades, or the entire inside of the unit from the walls including cabinets, bathrooms, kitchen, closets etc. It is important to check with your Condo Corporation to ensure you know what exactly you are responsible for if a loss occurs. This is important in determining the right kind of coverage, as well as how much coverage you will need.
The other important item is what the Condominium Master Insurance Policy covers - this is the policy that insures the building and common areas. The coverage in this policy may be different depending on the Condo. It is also important to ask what the deductible on the Master Policy is as a higher deductible Anything that is not covered under this policy will be assessed against the unit owners - meaning you!
What Does Condo Insurance Include?
Due to the unique natures of Condo's they require a unique policy. The coverage these policies offer are:
Personal Property - Also known as contents, this covers your personal possessions in your condo. Your are responsible for choosing a limit based on what you own. It is important to remember that your policy will pay for replacement cost of everything - meaning that ten year old TV will be replaced with a brand new TV.
Improvements and Betterments - Pays for any upgrades, or improvements you have done to your condo. This could be anything from renovating the kitchen to updating the bathroom.
Additional Living Expenses - Where will you live while your condo is being rebuilt or repaired after a loss? This part of your policy pays for you to stay in a hotel, rent another condo or extra expenses for staying at a friends house while your condo is being fixed.
Liability - If you accidentally burned down your friends house, would you have enough money in your bank account to repay them? For the vast majority the answer would be a resounding NO, which is why your liability is included as part of your policy. Liability covers you and your family for your personal negligent actions. We all make mistakes, and this coverage ensures you do not go bankrupt because of them. Please ask us to further help you with this coverage, as it also has many other benefits.
Loss Assessment - Pays for your share (up to your policy limits) if the Condo Corporation does not have coverage, or enough coverage.
Please call our office for a quote or to ask us questions regarding the coverage. The explanations above are only a general overview and there are many options to fit your personal circumstances.