As a condominium owner, you have a unique set of requirements when it comes to insurance. At Gifford Carr, we provide condo owners with comprehensive packages that take into account every possible detail, including single limit policy, unit owner contingent coverage, identity theft coverage, and even bike coverage!
What is the difference between a condominium and a house?
With the purchase a house, you own the building and the land your building. With the purchase of a condominium the ownership differs in that you have exclusive right to the interior space of the unit you purchased (you may also have a small outdoor space); the outside space, grounds shell of the building, and common areas are owned by the condominium corporation and are shared spaces among all unit owners.
Additional monthly fees are payable by unit owners to the condominium corporation to account for upkeep of common areas and a reserve fund is established for maintenance and repairs to the building.
What coverages are unique to a condominium policy?
- Contingent coverage: Coverage will extend to the unit owners unit, for an insured loss, excluding improvements or betterments, up to the limit showing on the policy documents, if the condominium corporations policy is not effective or is inadequate.
- Betterments and Improvements: A condominium unit owner’s policy protects any Improvements and Betterments that have been made by the unit owner (including improvements and betterments made by previous owners of the unit). The condominium corporations master policy covers the unit in its original condition at the time it was built and will not extend to any Improvements and betterments completed by a unit owner. Examples of improvements and betterments are upgrades to flooring, fixtures, cabinetry, counters etc.
Why do I need a condominium insurance policy for my unit? After all, the condominium corporation has a policy.
The condominium corporation’s master policy will not extend personal liability (if you are deemed responsible for causing property damage or injury) or personal property coverage.
What do I need to know about the condominium corporation to ensure I have adequate coverage?
A condominium corporation may have bylaws in place stipulating that unit owners are responsible for certain things that typically were the responsibility of the condominium corporation, such as, plumbing or wiring within the unit. It’s important to ensure the policy you choose will account for this.
Do I need a different policy if I decide to rent out my unit?
You do need to advise your broker if you decide to rent out your unit to ensure you have the proper coverage in place.
What is a deductible?
A deductible is the amount an insured is responsible to pay, in the event of an insured loss, before the insurer pays any part of the loss. The amount of the deductible is included on your policy documents.