The Standard Unit Bylaw is a matter of fairness. It is also a way for condo corporations, and condo owners, to save money.
The Standard Unit Bylaw can reduce property insurance premiums and the number of individual claims while clarifying insurance responsibilities. It ensures that in-suite improvements made by a condo owner are their responsibility to insure.
When a condo unit is sold, a Standard Unit Bylaw provides clarity for the new owner about what is covered under condo corporation insurance.
The effect of a Standard Unit Bylaw is to reduce the insurable value for the condo corporation. Condominium Insurance Solutions, a provider of insurance to condominium corporations, advises condo owners to ensure that items not covered by condo corporation insurance are covered by their personal home or renter insurance coverage.
Some condo corporations choose to exclude certain finishings, such as countertops and floorings, from a Standard Unit Bylaw. The more items excluded the lower the decrease on insurable value, and the less effective it is at reducing costs.
A Standard Unit Bylaw can speed up insurance payments on claims. It provides a clear definition of what is covered under a condo corporation insurance policy. Insurance companies do not have to undertake an investigation on what is covered under an insurance policy.