Condominium
Condominiums present some different insurance concerns from those of private homes. Below we’ve listed all the insurance issues that are relevant to a condo owner, whether you live in your condo or rent it out.
- Contents
- Is your limit adequate?
- Remember, it is not what you paid for the item, what you could sell it for, or what you could buy it on sale for – if you needed to replace ALL your belongings tomorrow, what would it cost?
- If so, their possessions will be covered by your personal insurance policy even if they are not living at home. attending a university or college?
- Do you have special contents which require specific insurance?
- Bicycles
- Most policies limit coverage to $500, and the coverage is subject to the policy deductible
- For an additional premium (based on the value) you can increase this limit, and lower or eliminate your deductible
- Jewelry
- Most policies limit coverage to a specific dollar amount (generally between $3,000 and $6,000), and the coverage is subject to the policy deductible
- For an additional premium (based on the value – which must be supported by an appraisal) you can increase this limit, and lower or eliminate your deductible
- Furs
- Coverage limits vary by policy
- Collectibles
- Coverage limits apply, other restrictions may apply
- Do you know what your policy covers?
- Business Contents
- Do you have any property related to a business?
- Did you know that the coverage for this property is generally quite restrictive?
- Boats/Yachts
- Most Personal Lines policies have some provisions for the ownership of watercraft
- However, there are limitations as to size, usage, horsepower, area of operation
- Additional Living Expenses
- This limit is generally a pre-determined percentage of the contents limit (20%-30%)
- If your condo is unlivable, you probably still have to pay your mortgage; can you afford to also pay rent?
- How long might you have to pay rent? Is the limit enough?
- Loss Assessment Coverage
- Several Strata Building policies now have very high deductibles relating to specific coverages such as Water Damage and Sewer Back-up
- Loss Assessment coverage protects you if there is an assessment made to the Strata in order to cover a deductible for an insured loss
- What is the water damage deductible on your building?
- Optional Earthquake coverage, which we ALWAYS recommend because:
- February 27, 2010: 8.8 Earthquake in Chile – estimated loss $8-$12 BILLION
- September 4, 2010: 7.0 Earthquake in New Zealand – estimated loss $2-$4.5 BILLION
- Use/Liability coverage – your personal liability policy covers you on and off your premises for your personal negligence; however, it assumes you are simply acting as a homeowner. If you use your home in other capacities, such as the ones below, you may benefit from additional coverage.
- Do you have a home based-business?
- Does your Insurer know?
- Do you have clients on the premises?
- You may need a business policy to cover this liability exposure.
- Do you do consulting or internet work?
- You may need a Professional Liability policy in place
- Tenant’s Improvements
- If you’re in a condo, Strata Plan building coverage only covers the cost of rebuilding the basic building, fixtures, and fittings.
- Have you renovated?
- Did you buy your unit with renovations already complete?
- If the building was built originally with inexpensive carpet, and you have installed hardwood floors – replacing them if they were damaged would be your expense.
