Category Archives: Condominum Information

By Myles Slocombe

When it comes to condo insurance, individual unit owners have certain obligations. Condominium corporations have to insure both the units and the common elements; however, owners should be acquiring their own insurance coverage for property and risks not covered under the condo corporation’s policy.

Types of Coverage Owners Should Have:

• Personal liability insurance: cover damages/injury to property or persons caused by a negligent act
• Content:  damage to or theft of personal belongings
• Improvements:  damage to condo unit upgrades
• Additional Expenses: when temporary accommodation is required due to a claim, etc
• Payment of the condo corporation’s deductible: in case the owner triggers a claim under the condo corp’s policy

General Tips for Condo Owners:

1)  Start the review process before the closing date of a purchase – or now if a current owner – to make sure you have suitable insurance coverage if something happens that’s unexpected.
2)  Obtain a copy of the condo corporation’s insurance policy because it differs from one condo to the next.
3)  Find a reputable insurance agent who can create a condo insurance policy that is specific to your exposure.  You may want to consider the insurer the condo corporation uses because they will be knowledgeable about the building, the scope of the condo corp’s insurance, and what insurance you will need. Alternatively, speaking with the provider of your auto insurance is another good option as they often provide bundled, and slightly discounted, rates.
4)  Provide your insurer with a list of improvements to the unit that you have made and, if possible, previous owner(s) made if condo is not brand new. If in Ontario, find out if your condo corp has what’s referred to as a “Standard Unit by-law”. This will help you to clarify which additional coverage you’ll require because it outlines what part of your unit is not considered an improvement.
5)  Review your condo documentation to ascertain what you are responsible for as per the condo corporation’s insurance deductible. Deductibles can be as high as $10,000 per incident and has been known to go as high as $100,000 for a single occurrence.
6)  Let your insurer know if you have a parking and/or storage space.
7)  If you are planning to rent out your unit, let your insurance agent know that as well – different coverage applies.
8)  Schedule an annual review with your insurance agent to have any improvements to your  unit, additional personal belongings, and/or amendments to your condo corporation’s by-laws  documented.
9)  For information on the Condominium Act in Ontario and specific insurance requirements, click http://www.cbs.gov.on.ca

The above requires a bit of diligence, but should something unforeseen happen in the future, they’re steps you’ll be happy you took.

Myles Slocombe is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Myles is also a regular contributor to the Muddy York Blog.  Myles’ web site is located at http://www.keystoneconnect.ca