Your condo corporation (through the condo or strata council) is responsible for buying insurance on the strata building. Specifications on the original construction of the building are used to calculate the amount of insurance needed. If you, or any earlier owner of your condo has installed granite counter or hardwood floors for example, these modifications will not be covered by the policy owned by the condo corporation.
You're responsible for insuring the cost of any improvements that have been made to your unit. It's actually pretty simple to be add on to your condo owner insurance policy, and get the required coverage by adding building improvements protection. Your unit will only be repaired to the original building specifications if damages occur, so it makes sense to purchase building improvements protection. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
Additional coverage would be required for home modifications like wallpaper, crown mouldings, baseboards, closet organizers, lights, and faucets, if you want to have full protection for your home. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Items such as window coverings and permanently installed lighting would be included as fixtures. In some condo bylaws, glass that is part of the unit may not be covered. Fixtures and glass can be added to your own insurance by your insurance provider.
You may have heard of condo property deductible assessments, but you may be unclear what they are. As mentioned earlier, condo corporations carry insurance policies on strata buildings. These policies protect against damage from fire, water, earthquake, etc. Deductibles are part of the majority of insurance policies, and this is the case with the strata's insurance policy as well.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. Your part of the condo corporation's deductible will not be covered even if you purchased condo deductible assessment insurance, if the damage is caused by earthquake, and you did not add earthquake insurance in your condo insurance policy.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. The deductible could also be the responsibility of the homeowner if the loss or damage was somehow caused due to owner negligence of some kind. We will look at the case of a burst pipe that is located behind one of your unit's walls. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. Some condo corporation deductibles could exceed this amount as well. Check your strata's annual general meeting minutes or contact your strata council to find out what your deductible is. There may be different deductibles based on the type of loss. Fire damages usually have a lower deductible than deductibles for earthquake or water damage. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
You're responsible for insuring the cost of any improvements that have been made to your unit. It's actually pretty simple to be add on to your condo owner insurance policy, and get the required coverage by adding building improvements protection. Your unit will only be repaired to the original building specifications if damages occur, so it makes sense to purchase building improvements protection. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
Additional coverage would be required for home modifications like wallpaper, crown mouldings, baseboards, closet organizers, lights, and faucets, if you want to have full protection for your home. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Items such as window coverings and permanently installed lighting would be included as fixtures. In some condo bylaws, glass that is part of the unit may not be covered. Fixtures and glass can be added to your own insurance by your insurance provider.
You may have heard of condo property deductible assessments, but you may be unclear what they are. As mentioned earlier, condo corporations carry insurance policies on strata buildings. These policies protect against damage from fire, water, earthquake, etc. Deductibles are part of the majority of insurance policies, and this is the case with the strata's insurance policy as well.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. Your part of the condo corporation's deductible will not be covered even if you purchased condo deductible assessment insurance, if the damage is caused by earthquake, and you did not add earthquake insurance in your condo insurance policy.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. The deductible could also be the responsibility of the homeowner if the loss or damage was somehow caused due to owner negligence of some kind. We will look at the case of a burst pipe that is located behind one of your unit's walls. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. Some condo corporation deductibles could exceed this amount as well. Check your strata's annual general meeting minutes or contact your strata council to find out what your deductible is. There may be different deductibles based on the type of loss. Fire damages usually have a lower deductible than deductibles for earthquake or water damage. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
About the Author:
For further details, please visit this link, or if you're a first time home buyer visit www.squareoneinsurance.ca.
No comments:
Post a Comment