May 2024
Your standard insurance policy protects your property and some possessions against damage or theft. Mortgage terms may require that you maintain this insurance to protect the interests of a financial institution.
Every condominium resident, owner or tenant, should maintain insurance coverage to protect against damage or loss to their personal property. Condo Owner Insurance provides coverage for owners consistent with their liability as owner and resident of a residential condominium suite. Tenant Insurance, purchased by tenants, is intended to protect possessions in the event of loss, liability for accidents, and against liability for damages arising from problems within a rented unit. Rental Coverage, purchased by the owner of a condominium suite, is intended to protect against property damage by a renter. Should a tenant cause $45,000 in damage to the suite and common areas, and be unable to pay for damages or lack adequate coverage, this provides financial protection to the condominium owner.
Regardless of what type of insurance you require, all policies include certain types of coverage.
Damage to the Home’s Interior and Exterior
Your insurer will compensate you for repairs or rebuilding costs resulting from fire, hurricanes, lightning, vandalism or other covered disasters. Water damage arising from interior flooding, including that from other units, is available for condominiums. Damage resulting from floods, earthquakes or poor home maintenance is unlikely to be covered unless additional “riders” have been purchased.
Damage to or Loss of Personal Items
Home contents including clothing, furniture and appliances are covered if damaged, destroyed or stolen in an insurance-covered incident. There is “off-premises” coverage for items such as electronics or jewelry if lost when away from home subject to certain limits.
Expensive items such as artwork or jewelry may require proof of value and a “floater” or “rider” policy for full coverage.
Personal Liability
This is protection from lawsuits filed by others. If someone slips and falls on your property or your dog bites a neighbour, your insurer will pay their medical expenses.
Accommodation during Repair or Rebuilding
If your home becomes uninhabitable, you are reimbursed for a hotel room, meals and other costs incurred while waiting for your home to become habitable after a covered damage. Policies typically impose daily or total limits on this coverage.
A condominium corporation maintains separate insurance to protect common areas of the building that include property and liability coverage.
