A condominium is like any other real estate asset that you purchase, you need to protect yourself from unexpected loss that it may sustain.
While the condominium may have a strata corporation that insures the building and common elements that insurance does not always apply to unit owners and there can often be gaps in coverage. The fact is, while the building itself may be protected, the contents inside your unit are definitely not.
As a condo owner, there are special requirements for your insurance policy because the building and your unit have separate insurance requirements. Condo insurance is valuable for unit owners because not only does it cover your personal property, but it also covers parts of your unit that aren’t covered by your association’s insurance policy.
Speak with a broker for a quote on condo insurance: 1.800.731.2228
The basic coverages included in most condo insurance policies include:
Additional coverages may be included or excluded depending on the insurer and there may be endorsements that require additional premium.
Another positive about condo insurance is that it is generally quite inexpensive. And, if you already have an auto policy, then combining it with a condo insurance policy can add up to big savings.
|Contents Limit||$1M Liability||$2M Liability|
|$300 DED||$500 DED||$1,000 DED||$300 DED||$500 DED||$1,000 DED|
Sometimes there are unique situations that require different coverages to be combined. For example, if you own a freehold townhouse condo, you could require a homeowners policy with loss assessment added on. Each condo situation is different, so it's important to speak with a broker who can help you secure the right policy.
Condo insurance is usually cheaper than homeowners insurance, as it does not cover the actual physical dwelling like a homeowners policy does. However, there could be other factors that make condo insurance equal or more expensive than some homeowners policy. The factors include type of building; where it is located; its construction style; and the amount of coverage you need to purchase for your specific needs.
Generally speaking no it is not. However if you use your condo as a place of business (something you must disclose to your broker and insurer) there could be tax deductions available.
No one is required to have insurance on their property but the strata corporation of your condo may require you to have coverage. Furthermore, if you have a mortgage or line of credit secured by your condo you may be required to have coverage by your lending institution.
This is a policy held by the strata council or condo corporation that covers the entire building and most importantly the common elements that are shared by all unit holders. Most master policies cover the following: the structure, common elements areas, and your standard unit. All other upgrades from when the builder delivered it are the responsibility of the unit owner. All unit holders are included as policy holders under a master condo policy. Deductibles can be quite high for a master policy and not all master policies cover every type of claim and this is why unit owners are encouraged to purchase their own personal condo insurance. Master polices are generally paid through the condo fees each unit holder pays to the strata or condo corporation.
While not common, in some cases smaller condo buildings of like size and construction can purchase insurance together to reduce premiums and possible increase coverage options for the condo associations. Another form of pooled insurance is when a condo is large and insurance companies ‘pool’ together to take on part of the risk. If a condo is to be insured for 20 million 4 companies may take 25% of the 20 million in risk so if a loss happened they would each be responsible for 25% of the loss.
This is a complicated question because there are several concerns at play. You should have enough coverage for your personal property value, any improvements and betterments that you have acquired or made as well as coverage for the condo corporation’s deductible at the very minimum. If you have a mortgage the lender may have a requirement for certain limits. The basic, all-encompassing answer is that the amount of coverage should be enough to make you whole again so that you do not suffer any financial loss of your own.
As insurance brokers, we work with a number of different insurance companies, so we can shop around and find the right policy for your particular needs. Please call us or email us to get started on a quote.