Condominium insurance is unique in that the grey areas are not easily evident to the uninformed buyer/investor/landlord. For instance, in Canada and most developed countries, condominium units are registered under a Condo corporation who is responsible for the overall care of the condominium building.Part of the obligation of the Condo Corporation is obtaining an insurance policy for the entire building including each unit.
However, here’s where the black and white ends and the grey begins and raises the question: What isn’t covered for each unit under the Condo Corporation Insurance?
My advise for where to search for answers is within the Condominium Corporation’s Insurance Policy which should be readily available to you upon request.
Typically the Condo Corporation’s Insurance Policy does not cover
- Your belongings
- Certain Structural Components of your Unit
- Unit Assessment
- Liability Coverage
Purchasing a home is said to be one of the most important decisions an adult will make in their life time, taking steps to safe-guard the asset should be a priority too.
Here’s an example
Sally just bought a unit on the 23rd floor of recently completed condo project in downtown Toronto, Unknown to her, a neighbour on the 24th floor who is away on for the weekend has a leak in their hot water springs. The trickle flows down through the roof of Sally’s unit and causes significant damage. The question is whose insurance pays?
You just bought your first investment property and being a DIY landlord, you chose to do the whole process of screening, showing, drafting and check-in inspection yourself. Given your inexperience you may have skipped some pertinent steps. Your new tenant Tom has a few undisclosed hobbies such as punching walls when provoked, growing exotic plants, or even keeping a pet but not caring for it. As a result, after he moves out your rental is damaged? What sort of coverage do you have for theft or damage and are their restrictions?
Life has taught me, its better to seek out information now than wait for the trigger of an unpleasant experience, even when I think I know, so keep it simple stupid give a call to your preferred insurance agent today and get the facts.
With head and heart