Condo Insurance

Not all condo insurance policies are the same, and it’s important to make sure that your policy includes all of the protection you need. When you purchase condo insurance, consider whether you need the following:

Standard Coverage

Personal Property – Protects “your stuff” and all of the contents inside your condo. Items can be anything from clothing to furniture. You should have enough coverage for your personal property value, any improvements and betterments that you have acquired or made as well as coverage for the condo corporation’s deductible at the very minimum.

Third Party Liability – In simple terms, liability insurance covers legal matters in relation to your property. Liability coverage comes into play when yourself or a family member has been found partially or wholly responsible for third party property or personal injury damages due to an accident in relation to your property. One thing that property-related personal liability does not cover is anything to do with a vehicle. It is important to ensure that your policy has enough coverage to protect all of your assets. If you have significant assets like a farm or business you may want to purchase an umbrella liability policy. If you have questions about umbrella liability please contact your broker.

Additional Living Expenses – Covers expenses like food, hotel and anything you would be forced to pay over and above the usual cost of living in your own unit when you are prohibited from returning or is unlivable as a result of insured damage. Some examples of additional living expenses are:

• Hotel bills
• Restaurant meals
• Laundry
• Rent
• Mileage
• Pet boarding
• Storage

• Improvements and betterments – Provides additional coverage for any improvements the unit owner makes over and above the standard unit as determined in the condo corporations’ bylaws. Generally, this is upgraded flooring or fixtures. However, a condo corporation bylaw may constitute a standard unit as an empty shell. In this case the improvements and betterments should be the value of at least builders grade construction and additional for upgraded flooring and fixtures.
• Contingency – Provides the unit owner with additional protection for the building. This is coverage used in the event that the condo corporation doesn’t have adequate insurance. Basically this is insurance for everything for the studs out in the event the condo corporation is underinsured. Many condo corporations will request the unit owners have this coverage.
• Loss Assessment – Condo owners share both ownership and legal responsibility with the other individual unit owners for the condominium’s common areas. Loss Assessment coverage is generally included in the Liability coverage.

Payment for the Unit Owners’ share of special assessments against the Unit Owners made necessary following direct loss to the Condominium Corporations’ property caused by an insured peril under the Unit Owner’s policy.

Payment of the Unit Owners’ share of an additional assessment where the loss or damage to the owners unit is as the result of an act or omission of the Unit Owner. The amount will be the lesser of the cost of repairing the damage or the deductible on the Condominium Corporation’s insurance policy. Payment of the Unit Owners’ share of an additional assessment where the loss or damage to the owners unit is as the result of a circumstance included in a by-law passed by the Condominium Corporation to deal with this issue. This means that there will be a contractual response to the additional amount added to the charge for the common expenses.