Your condo corporation (through the condo or strata council) is responsible for buying insurance on the strata building. This insurance is based on the specifications of the building as it was originally constructed. Upgrades that you, or previous owners of your condo have made to your unit are not covered by the policy held by the condo corporation, typically things like hardwood floors or granite countertops.
If you have made improvements on your unit yourself, insuring the extra costs of these improvements is your responsibility. If you add building improvements protection to your condo owner insurance policy, you can be covered completely. If you choose not to buy building improvements protection, then any damage that may occur to your unit will be repaired to the original specifications of the building. In a case of a burst pipe, your strata's insurance company would only be required to install the original carpet or flooring, and they would not pay for your hardwood floors to be replaced.
Other types of building improvements that are commonly made, and you may want to protect, include the installation of wallpaper, crown mouldings, baseboards, closet organizers, and specialty lights or faucets. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Permanently installed lighting and window coverings are examples of fixtures that are not generally covered. In some condo bylaws, glass that is part of the unit may not be covered. Coverage is available for both fixtures and glass.
You may have heard of condo property deductible assessments, but you may be unclear what they are. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Damages caused by water, fire, or earthquake are typically covered by this insurance. As with most types of insurance, the strata's policy will contain a deductible.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. In cases where the loss arises from something in your unit or because of your actions, you could be responsible for the entire deductible. For example, let's say a pipe bursts behind one of the walls in your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
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. Depending on what kind of loss was incurred, the deductible could range in cost. 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.
If you have made improvements on your unit yourself, insuring the extra costs of these improvements is your responsibility. If you add building improvements protection to your condo owner insurance policy, you can be covered completely. If you choose not to buy building improvements protection, then any damage that may occur to your unit will be repaired to the original specifications of the building. In a case of a burst pipe, your strata's insurance company would only be required to install the original carpet or flooring, and they would not pay for your hardwood floors to be replaced.
Other types of building improvements that are commonly made, and you may want to protect, include the installation of wallpaper, crown mouldings, baseboards, closet organizers, and specialty lights or faucets. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Permanently installed lighting and window coverings are examples of fixtures that are not generally covered. In some condo bylaws, glass that is part of the unit may not be covered. Coverage is available for both fixtures and glass.
You may have heard of condo property deductible assessments, but you may be unclear what they are. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Damages caused by water, fire, or earthquake are typically covered by this insurance. As with most types of insurance, the strata's policy will contain a deductible.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. In cases where the loss arises from something in your unit or because of your actions, you could be responsible for the entire deductible. For example, let's say a pipe bursts behind one of the walls in your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
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. Depending on what kind of loss was incurred, the deductible could range in cost. 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.
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