July 2014
Some condo owners feel that household insurance is unnecessary. Perhaps some expect that insurance maintained by their condo corporation extends to their individual unit or for claims arising from what occurs within their unit.
Household insurance for a condo unit owner and the building insurance maintained by the condo corporation are distinctly different policies. One does not replace the other.
A recent survey of condo owners conducted by Allstate Insurance shows that 61% of respondents had no understanding of their personal responsibilities in the event of damage to their or a neighbouring condo.
Condominium corporation insurance is a commercial policy. This insurance covers damage and liability throughout common areas of the building. The actual definition of common areas can vary.
“Household insurance is a consumer policy designed to protect whatever in the unit is not considered a common element” explains David Waserman of DMW Insurance, who provides insurance services to the Yonge North Corridor community. “This would typically include personal property such as clothing, shoes, jewellery or artwork. It would also likely include improvements to a unit such as electronics, cabinets, appliances or hardwood floors. Features of this policy could protect against damage that you cause to another unit or protect you if someone is hurt while visiting your unit.”
Condo building insurance does not cover many forms of damage that may start in or affect individual units. Should a fire or water leak in your unit result in damage to other units or common areas you could be responsible for damages. When damage to common areas or other units is covered by insurance maintained by the condominium corporation, deductibles of $10,000 or higher may be the responsibility of the unit responsible for the damage.
DMW Insurance provides condo, home, car, business, commercial & life insurance services, and can be reached at (416)787-1668 or www.dmwinsuranceltd.com
