We often hear that condo owners and tenants don’t feel they need insurance for a variety of reasons. Regardless of the reason, the importance of a condominium owner policy or a tenant policy should not be understated — because just like homeowners, condo owners and tenants face similar risks to their private property.
Most condo owners should already have a policy because it’s a requirement by many mortgage companies as well as a requirement of the condominium corporation bylaws. In the past, requirements for renters have not always been enforced, but this is changing with the growing awareness that the risk of loss and liability is real. No matter how careful residents are, unfortunately, your neighbors may not be as careful as you are.
Like homeowner’s insurance, condo owner and tenant policies would cover the insured’s personal property and contents, third party liability, and additional living expenses in the event something happens (like a fire or burst water pipe) that prevents them from staying in their home. In addition, condo owner insurance also protects the unit’s improvements and betterments, condo deductible costs, the unit itself or a loss assessment on the building should the condo corporation have no insurance or have inadequate insurance for which that the owners policy would normally cover.
Note: Your Insurance Broker is the expert here. Call them and discuss your concerns to make sure you get the best possible coverage for your protection.
If you are a condo owner, provide your condominium corporation’s insurance policy plus your bylaws to your insurance broker. These documents are provided at the time of purchase and the insurance certificate is also typically mailed out once a year.
5 QUESTIONS TO ASK YOUR INSURANCE BROKER
- If my building suffers damage that started in my unit, what amount of coverage is provided in the event I’m charged back a condominium deductible and/or the cost of the damage?
- (If I’m a condo owner) Are the upgrades and renovations I did to my home covered?
- Are my contents covered for damage to theft, whether or not it’s my fault?
- If someone is hurt in my unit or because of damage that started in my unit, what kind of coverage do I have?
- If I have a storage locker of items stored in my parking space and they are damaged (or stolen), how am I covered?
Insurance is very important, whether you’re an owner or a renter, so make sure that you’re covered. A couple extra dollars a month can save you time and money in the event of an accident. For more information on insurance, visit the Insurance Bureau of Canada or get a free quote in just minutes from our partner, Nuera Insurance. Condo Owners and Tenants get a discount with Nuera. Email us if you don’t have your discount code handy.