Condo Insurance Coverage Explained

condo

If you have purchased any type of insurance before you know that it can be a bit of a challenge making decisions about it. It is because there are options. The same applies to Condo insurance.

The Basic Condo Insurance

Condominium Corporations are required to buy their own specific insurance policy. Then the individual unit owners will buy additional insurance coverage that specifically pertains to their specific responsibilities. Such as their own unit, their belongings, and their portion of the shared components of the condominium.

Condo insurance is somewhat different from tenant insurance. It is because the ownership circumstances are different. Some individuals rent their condos. Other’s own them.  In Canada, the condo insurance can be broken down into categories.

Increased Improvements and Upgrades

Condo owners are normally allowed to upgrade and improve their condos. These individuals want increased coverage. So there are insurance companies that will provide this.

Contingency Coverage

If there is not enough Condo insurance in place, then additional insurance can be purchased by the individual condo owner.

Loss Assessment

Condo owners are each responsible for a portion of the common areas. Insurance buyers can purchase extra insurance to cover the costs of insured mishaps in these areas.

Directors and Officers Liability

Some condo owners also take up positions on the board of directors. When doing so, they can become liable. There is extra liability insurance available to assist them with any potential insurance related costs that could arise from this.

Condo Insurance Coverage for What You are Responsible for

swimming pool

As a condo owner, you have several different components of the condo property that you share a responsibility for. Which can include;

  • Your personal unit
  • Common areas
  • elevators
  • The exterior grounds
  • Swimming pools
  • Recreational areas
  • Garage
  • Storage locker

Each Insurance Company that offers Condo insurance will have their own packages. Here are a few examples.

The Co-Operators

This insurance company offers two different Condo insurance packages.

The Prestige

This is what one could call the super package of condo coverage. It offers insurance protection for the majority of mishaps that can take place. Such as fire, flood and theft but also additional mishaps like furniture or belongings getting damaged from an accident.

The Classic Condo Package

This is the basic condo coverage for those who want the important aspects of condo insurance coverage but aren’t looking for any extras.

Intact Insurance

This insurance company has a basic condo insurance offering that provides the common condo coverage that one will expect. As added extras to make their particular condo insurance package more appealing they offer additional coverage for;

  • Maintenance fees as they relate to an insurance issue
  • A temporary health club membership in the event the insured cannot live in their unit and are not able to use their condo facility
  • Storage locker contents.

Square One Insurance

This condo insurance provider takes a different approach. They believe in creating personalized condo insurance packages. Insurance shoppers can choose the various types of coverage they want then pay for this accordingly. While the company states condo insurance can be as low as $40. a month. Naturally with each additional coverage chosen the premiums are going to increase.

Typical Types of Condo Insurance Coverage

jewelry

 

These are the most common types of condo insurance coverage, although they will vary among the various insurance companies.

  • Perils
  • Liability
  • Personal belongings – these can vary as to what is covered and for how much. Some examples are;
  • Stamp collections
  • Art
  • Jewelry
  • Coin Collections
  • Bikes
  • Various types of collections

With each insurance company wanting to be unique they will often offer additional types of coverage such as;

  • Money and cash cards
  • Student property
  • Re-keying
  • Lock Replacements
  • Dishonesty coverage
  • Identity fraud

Do I Need Condo Insurance?

Some condo owners may question as to whether they need additional condo insurance beyond the basics of what they are required to have. There are some that say no, but there are other experts that feel this may be necessary as related in a Lawyers Daily article.

This is an article that takes one back to the major storm that hit Toronto in July of 2013. The final figure that came as a result of that storm was $850. million with it being reported that many condo unit owners were affected.

This article goes on to say….” There is a related obligation on the corporation to obtain and maintain insurance in the event of damage caused by major perils to either the common elements or the units. Condominium building insurance policies cover only the common areas, such as a lobby or a party room, and the standard unit. They do not cover any upgrades made to a unit, or the contents of a unit. Therefore, when a unit is damaged by a major peril, the condo corporation can turn to its insurer for repairs, but owners must look to their own insurer to repair any damage to the contents or any upgrades to the unit.” source: thelawyersdaily.ca

This helps to make it a little clearer about condo insurance, but the article also goes on to talk about how complex it can get for condo owners when it comes to condo insurance. Especially if new legislature comes into play.

Generally speaking, condo owners are much better off knowing that they have adequate coverage for the condo insurance needs that they are responsible for. As well as additional coverage for their own personal condo.

Is Condo Insurance Different from Landlord’s Insurance?

There are differences in condo insurance and landlord’s insurance.  Also, there are different rules and regulations that pertain to both landlords, and condos.  Plus, there is the Residential Tenancies Act for landlords and tenants. Then there is the Condo act for condominium corporations.

Resources

https://www.cooperators.ca/en/insurance/home/home-insurance-basics/whats-covered.aspx
http://www.ibc.ca/nu/home/types-of-coverage/condominium-or-strata-coverage
http://condobusiness.ca.dnnmax.com/Howtoexplaincondominiuminsurancetoresidents.aspx
https://www.intact.ca/on/en/personal-insurance/home/condo.html
https://www.squareoneinsurance.com/condo/ontario
https://www.thelawyersdaily.ca/articles/4743/condominium-owners-in-ontario-wade-through-uncharted-legislative-waters
http://www.mah.gov.on.ca/page137.aspx
https://www.ontario.ca/laws/statute/98c19?