Condo living is a standard practice across most urban centres in Canada and its popularity continues to grow across the country.
The Insurance Bureau of Canada (IBC) recently had a survey to gauge how well condominium unit owners in Quebec understand their insurance and results indicated more awareness around the topic is needed.
Of the respondents, 19 per cent said they said that they didn't know that two insurance policies cover condos. These two policies include the unit co-owners own condo insurance and the condo syndicate's mandatory insurance cover. The survey also found 50 per cent of co-owners didn't know the amount of their syndicate's insurance deductible. This amount is something co-owners might be required to pay pro-rated to their share in case of a loss.
Other survey findings include:
- Only 14 per cent of co-owners knew about the syndicate's options for paying its policy deductible in case of loss.
- One in three co-owners didn't have coverage for water damage (or did not know whether they had), although it's the leading cause of home insurance claims.
- 40 per cent of co-owners did not know much about, or barely understood, their Declaration of Co-Ownership.
Understanding the right insurance to keep you and your possessions safe in the event of a disaster is important and condo insurance can help.
What does a typical policy look like for a unit owner?
You can usually expect your condominium or strata policy -- as condominiums are known in Alberta and British Columbia -- may include coverage for:
- Your personal property such as clothing, appliances and furniture, as well as items stored in your locker.
- Additional living expenses, in case you can't live in your unit in the event of an insured loss in certain circumstances.
- Your personal liability for any bodily injury or property damage unintentionally caused to others.
What qualifies as common property?
Common property is any area available for use by all unit owners -- anything that's considered shared, such as a lobby, rooftop patio, swimming pool, parking garage and other amenities. Unit owners share the expense of maintaining common property by paying monthly maintenance fees. In some cases, limited access common property - such as a balcony or storage locker - may be common property or a common element even though a unit owner has exclusive use.
At NFP, we're always looking out for the interests of condo owners and pride ourselves on filling the gaps they may have in their coverage. Get in touch with one of our condo insurance specialists today to better understand your coverage, and ensure it's right for you. Request a quote online or call us at 1-844-811-1118