There is one common mistake among condo owners. One that can cost thousands of dollars.
The mistake? Not getting condo insurance.
Once a property is purchased, the next step is home insurance options. To protect what they own homeowners find the best coverage for them to protect what they own. That doesn't seem to be the case with condo insurance.
In Canada, 61% of condo owners assume incorrectly that the condominium corporations insurance will cover them as well. The lack of insurance knowledge puts them at risk.
What is condo insurance?
Home insurance works differently in condos since the property has unique insurance needs. A typical home insurance policy is not suitable to protect your condo unit and personal belongings.
In the condo lifestyle, you are part of a condominium corporation. The common elements fee you pay monthly include insurance for the areas shared with all residents like hallways, lobby, parking lots, etc. Any damages to the common areas would be covered, but as a condo owner, you are responsible for your unit - and its protection.
To protect your unit from any damages and yourself from any personal claims condo insurance needs to be purchased separately.
Is it mandatory?
Condo home insurance is not mandatory in all provinces, but you never know when bad luck might strike. Protecting your real estate purchase and personal belongings is the wisest choice.
What does the insurance policy cover?
Knowing what your policy covers and what it doesn't is one of the essentials of any home insurance. Condo insurance coverage includes:
Renovations or improvements made in your condo unit
Personal property and belongings including the ones stored in your locker
Living expenses in case of loss of your unit
What are the benefits of condo insurance?
For some, condo insurance might not seem necessary. After all, the condo corporation already covers the common elements. But condo insurance (like any insurance) is about reducing financial risk from unexpected events that cost up to thousands of dollars.
For example, with a washroom renovation and all its plumbing work, there is potential for things to go downhill. Any mistakes can cause water damage to your unit and your neighbour’s. Accidents can turn into claims against you when another person or property is harmed. In this case, you will be held responsible for the cost of the damage and temporary stay while your unit is being repaired.
The story has a happier (and cheaper) ending with condo insurance. You would be covered against all loss and damage in your unit, other units affected and the legal costs of these incidents. Protecting your condo, personal belongings and yourself doesn't fall short of benefits.
How much will my insurance be?
The cost of insurance will depend on a variety of factors. Your insurance company will calculate your premium based on where you live, the size of your unit, the age of the condominium and the value of your personal belongings.
It is one more extra payment, but it is worth every penny.
How to buy condo insurance
To get a condo insurance quote start by telling us a bit about yourself and your condo. We will send you the best insurance rates and coverage options for you.
Condos are leading the way in the housing industry, but the best investment you can make is protecting your most significant purchase. Start your search for a condo!