As owning a condo is different than owning a house, the way you insure it is also different.
When you own a condo, you only own a portion of the building. Typically this means you’re only responsible for the inside of your unit and your condo corporation would be responsible for the exterior and common areas (like the lobby, walkways, or pool). However, the condo corporation can split a deductible between all members if it needs to make a claim.
Condo insurance will provide coverage for the following areas:
- Personal Property – From your comfy bed, down to your favourite pair of shoes, you want to have insurance to cover your all personal belongings from damage or loss.
- Liability Coverage – Liability insurance can cover costs if you cause damage to another person’s belongings or unit (like if you leave a tap running and flood the unit under you).
- Betterments & Improvements – If you renovate your condo or make improvements that are better and above a basic unit, you may need additional insurance. Sometimes this insurance is part of your policy, but other times you will need to add additional personal property insurance to cover the improvements. Before you make improvements, it’s a good idea to check how your current insurance policy works.
- Loss Assessment – When the condo corporation has to make a claim, it will split the deductible between all condo owners. A condo policy will provide coverage for your portion of the deductible, (also called the loss assessment).
We hope this helps you understand condo insurance a little more. Please stop by a branch or get in touch with us if you have more questions.