Condo VS. Individual Insurance – What You Should Know

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Condo VS. Individual Insurance – What You Should Know

Posted By Cole Romaniuk

Condo Corporation Insurance:

  • A Condominium Corporation refers to the collection of individual units and the land these reside on, whereas an unit owner obtains a title to space within a unit
  • Condo Insurance is regulated by the Alberta Condominium Property Act and Regulations and By-Laws and covers all common property (interior and exterior) including your ceilings, walls, and floors
  • A Condo corporation’s insurance policy does not cover unit owner’s personal assets so one should always have adequate personal insurance

Coverage by Typical Unit Owner’s Insurance Policy:

  • Personal property: all items the owner has on premises including furniture, electronics, and more
  • Additional Living Expenses: helps pay for rental expenses in the event that the home becomes unsuitable for living or damaged through no fault of the owners
  • Betterments & Improvements: covers certain upgrades or renovations of the flooring or counter tops
  • Condominium Deductible Assessment: to protect against condominium by-laws that charge back insurance deductible to unit owners who are responsible for loss/damage. You should get a personal policy that covers this risk to an extent (saves you from paying anywhere from $5000 to $100,000 for a particular incident)
  • Condominium Protection: covers your unit if Corporation has no or inadequate insurance (Unit Additional Protection) and covers your share of assessments due to loss to shared elements, which is valid under the Condo Corporation’s rules (Common Elements Loss Assessment)
  • Personal Liability: protects you against claims for property damage and bodily injury
  • You can also ask for Sewer Back-Up coverage

Overall, it is a good idea to add a layer of protection against risks by getting a personal insurance policy. Each insurance policy will differ in some respects so ensure the terms and coverage are well understood. The most important thing is to bring your condominium insurance certificate to your individual insurance broker to ensure you have proper coverage.

Written by Cole Romaniuk

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