Research shows that most people are unaware of condo insurance policies and what they cover. Our qualified insurance brokers in Ontario have put together this guide to help you understand the essentials about condo insurance coverage so that you can make an informed decision.
What is Condo Insurance?
Condo insurance is mostly similar to home insurance. It is purchased by the unit owner to protect their property and belongings.
There are two aspects of condo insurance:
- Personal condo insurance policies purchased by the unit owner
- The commercial condo policy bought by the condo corporation
Although it is not mandatory to have an insurance policy on your condo in Ontario, it is wise to get it insured. This is because if you have a mortgage, the lender will need you to protect the unit by insuring it. Moreover, having a comprehensive policy helps to safeguard your belongings and yourself from any liability.
Condo Policy Purchased by the Condominium Association
According to reputable insurance companies, most people are not sure why they need to have a personal policy when they already contribute to the commercial condo insurance bought by their association. It helps to know that the common condo coverage purchased by your condo association will not cover individual unit owners and their belongings. In most cases, it will only include the following:
- Property Damage
This covers any damage to the structure of the building or common areas, such as the lobby and elevators, caused by fire, roof leaks, and more. Also, if your condo gets damaged in a building-related incident, the association’s policy will only cover the costs of repairing your condo to ensure its condition meets the requirements of what they consider to be a standard unit. Thus, it will not include the cost of your upgrades or improvements.
If someone gets injured in any of the common areas of the building, the association’s policy will include the costs to cover the damages.
Coverage of a Condo Insurance Policy
According to insurance brokers, a basic condo policy will cover your belongings. However, it helps to determine the coverage limit to ensure that it adequately covers the cost of all your valuables. This includes your furniture, kitchen appliances, electronics, clothes, shoes, books, and more. Also, you will need extended coverage for specialty items, such as high-end equipment, expensive jewellery, and antiques. Making a list of your household inventory will help you decide the right value for all your possessions.
Contact Our Insurance Brokers in Ontario for All Your Needs
At Orr & Associates, we have a team of dedicated and qualified professionals to help you. Our insurance brokers are well-trained to understand your needs and come up with suitable recommendations in the form of insurance policies. We are connected with the best insurance companies to meet the varied needs of our clients.