Does Your Condo Insurance Leave You At Financial Risk?
As a condo owner, do you assume that your building’s insurance will cover damage to another unit from water or fire that originated in your unit? If so, you are not alone. According to a recent study conducted by Abacus Date for the Allstate Insurance Company of Canada, 61% of condo owners either don’t know or, make the same incorrect assumption.
In an article by lawyer Mark Weisleder, he also point out that some condo buyers wrongly think they don’t need to buy their own household insurance believing that it is covered intheir condominium fees each month.
In the Abacus study, Allstate Insurance found that over 60% of owners really don’t know very much about their common element insurance, the policies and what is covered or not covered. Who pays the deductible? What areas or items are covered? What about unit upgrades and, how much is the deductible? Another question is to learn if premiums in a corporation have been going up and if there have been numerous claims. What about locker contents? How about sewer back-ups?
Mark points out in the article that a condo corporation policy will typically cover common areas but does not cover an owners upgrades to a unit or, personal belongings. Thankfully, owners can and SHOULD purchase their own contents insurance however, they may wish to go further. If you currently own or, if you are looking at buying a condominium, you would be well advised to start your homework by reading Mark’s excellent article and then asking the right questions of the property manager and insurers.
In the Collingwood and Blue Mountain areas where many units are occupied on a part-time basis or, are part of rental programs or pools, there are usually additional provisions in insurance policies that you must make yourself aware of. If you are a landlord who rents out a unit, you may be surprised at some of the fine print you have not thought of before.
By making sure that you know what coverage you have and what coverage you need, you can enjoy peace of mind knowing that you have minimized your financial risk and can have greater peace of mind.