Condominium insurance is different from non-condominium insurance and it is important that your broker is aware that you have purchased a condominium. Unit owners should always discuss their individual situation with their broker to ensure they have proper coverage.
The Condominium Act, 1998 requires condominium corporations to obtain coverage for the entire structure including all units in case of major perils, as defined by the Act. This coverage is included in your monthly maintenance fees. The corporation covers the units as they were architecturally built to the builder’s specifications only. This does not include appliances included in your purchase price or any upgrades or betterments made by you as the owner.
As the unit owner, you are responsible to obtain insurance for appliances, upgrades and personal property such as furniture, clothing, wallpaper, paneling, etc., in addition to any personal items stored anywhere in the property (i.e.lockers). You are also encouraged to obtain personal liability insurance to insure against any personal activities as a unit owner and the ownership of your unit. For instance, you may be subject to claims from other unit owners who have experienced damage to their upgrades, improvements and contents, if you are directly responsible for the damage. Protection against this type of claim is available if you have proper liability insurance.
You should also arrange for loss deductible insurance, as you will be responsible for the condominium’s deductible in the event the damage was a result of an act or omission on the part of the unit owner. The indemnification clause would require you to assume responsibility for this deductible amount per Article VIII of the condominium Declaration.
Insurance should not be confused with “Repairs and Maintenance” as these are 2 separate issues. Please refer to the Declaration, Article V. to determine maintenance responsibilities. Should a potential claim be sought due to owner negligence to maintain, the delinquent owner will be directly responsible for the costs of repairs. The condominium declaration requires each owner to maintain his/her unit and repair after damage, and assume responsibility for damage to other units and the common elements which result from failure to maintain or repair or from an act or omission of an owner (or their family, guests, visitors, etc.).
In the event of a potential claim, an insurance adjuster will be required to view and assess the damage and determine cause and responsibility. Therefore, please ensure that you call the Property Manager immediately to coordinate the appointment with the adjuster. We hope to avoid any compounding damage. Should your unit be uninhabitable, the Corporation’s insurance does not cover living allowance. The amount required for hotel stays or other accommodations should be part of your personal policy.
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