What is Condo Insurance and Do You Need It?
If you own a condo, you may be wondering if you need to purchase condo insurance. After all, doesn’t your strata already have insurance? The answer is not as simple as you might think. In this blog post, we’ll explore what condo insurance is and whether or not you need it.
What is Condo Insurance?
Condo insurance is a type of insurance that specifically covers condos. This coverage is in addition to the coverage provided by your strata. Strata insurance typically covers the building itself and common areas, such as lobbies and recreational rooms. However, it does not cover the contents of your unit or any damage that you may cause to other units. That’s where condo insurance comes in.
Do You Need Condo Insurance?
If you own a condo, the answer is likely yes. While your strata insurance will cover some things, there are many things that it will not cover. For example, if there is a fire in your unit that damages both your belongings and another unit, your strata insurance will likely only cover the damage to the other unit. If you want your own belongings to be covered, you will need to purchase condo insurance.
What Does Condo Insurance Cover?
Condo insurance policies typically fall into two categories: all-risk policies and named perils policies. All-risk policies provide coverage for any peril that is not specifically excluded in the policy, while named perils policies only cover the perils that are specifically named in the policy. That being said, most condo insurance policies will provide coverage for the following:
-Fire and smoke damage
-Water damage (such as from burst pipes or leaks)
-Theft and vandalism
-Wind and hail damage
-Liability coverage (in the event that someone is injured on your property)
How Much Coverage Do I Need?
The amount of coverage you need will depend on a number of factors, such as the value of your personal belongings, the size of your unit, and your deductible. A good rule of thumb is to purchase enough coverage to replacement cost of your personal belongings and to make sure that your policy covers at least $1 million in liability coverage.
It is also important to note that your strata corporation’s master policy likely has a deductible that must be met before coverage kicks in. As such, you should make sure that your condo insurance policy has a high enough limit to cover your strata deductible in the event that you need to make a claim.
What Will My Condo Insurance Policy Cost?
The cost of your condo insurance policy will depend on a number of factors, such as the value of your personal belongings, the amount of coverage you purchase, your deductible, and the location of your unit. That being said, most condo insurance policies cost between $100 and $400 per year.
Potentially. Where you live will likely have an impact on your condo insurance, although there’s no blanket rule. Your location is just one of the factors that can determine your premium. Things like the value of your personal belongings and past claim history can also shape the cost of your insurance.
Condo insurance is a type of insurance that specifically covers condos. It is important to note that this coverage is in addition to the coverage provided by your strata. Strata insurance typically covers the building itself and common areas but it does not cover the contents of your unit or any damage that you may cause to other units. If you own a condo, the answer is likely yes when it comes to needing condo insurance.
More insurance for strata corporation information is available from the Government of BC website.
Check out the Stratagize podcast hosted by Brent Anderson and James Milne “What you need to know about strata insurance” on Spotify. In this episode Paul Murcutt, Senior Vice President of BFL Canada gives an overview of the strata insurance market and what stratas can do to minimize the impact of claims.
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