There’s a common misconception that often permeates the property ownership world that condominium owners don’t need household insurance, as they think that it’s covered in their monthly common expense payment.
It is true that condominium corporations must have insurance on a building, typically in the form of a building insurance policy. It doesn’t cover everything, however. There are deductibles to take into account as well. When looking at how TD Insurance explains this concept on its official website, a building insurance policy usually “only covers the common areas” (i.e., the lobby, elevators, gym). It doesn’t, however, cover an individual’s personal belongings.
One of the most noteworthy aspects about condominium insurance is that if a pipe in your unit bursts, or there’s a fire in your condo, and it affects other units, you could be responsible for the damages — not the condominium building or its insurance policy. What’s more alarming is the fact that an August 2013 study by Abacus Data found that a surprising 61 per cent of new condo buyers didn’t know this.
At Ferrari & Associates, we’re here to bring you up to speed. We’ll also make sure you’re properly covered, informed and protected upon buying a condominium unit. As referenced on our website, if you are a condo owner, you need insurance for your personal belongings and any improvements or renovations made to your unit. Condo owners are typically responsible for conducting any repairs and maintenance. As a result, it’s recommended that you have the condo unit inspected by a certified professional to examine the HVAC, plumbing and other essential components that the owner should be aware of. If a breakdown or malfunction occurs, the onus could fall on the condo unit owner to make the repairs.
Moreover, a condominium corporation’s building insurance policy doesn’t cover damages if someone hurts themselves while visiting your condo unit. This is something to take into account when purchasing condominium insurance.
This may seem like a lot to process. Don’t worry. At Ferrari & Associates, we give you one less thing to worry about in the condominium and home-buying process. Through our one-on-one consulting program, we’ll take the time to explain to you what’s covered and what isn’t in your condominium insurance. We’ll break it down for you in terms you can understand. One of our guiding principles is to develop a thorough and effective insurance package that is ideally suited to your needs, your budget and your lifestyle.