The strata council of your condo corporation provides protection for the strata building by purchasing insurance. The amount of insurance purchased is based on the building's original construction specifications. If you, or any earlier owner of your condo has installed granite counter or hardwood floors for example, these modifications will not be covered by the policy owned by the condo corporation.
You're responsible for insuring the cost of any improvements that have been made to your unit. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
Other types of building improvements that are commonly made, and you may want to protect, include the installation of wallpaper, crown mouldings, baseboards, closet organizers, and specialty lights or faucets. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Fixtures would include any permanently installed lights, window coverings, etc. Coverage for glass that is part of the unit itself is not always included, so check the bylaws in the policy. Coverage is available for both fixtures and glass.
Some condo owners do not fully understand what is included in their condo property deductible assessments. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Damages caused by water, fire, or earthquake are typically covered by this insurance. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
Owners of each unit in the building will likely be assigned a part of the deductible by the condo corporation, if there is significant damage to the building. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. In cases where the loss arises from something in your unit or because of your actions, you could be responsible for the entire deductible. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. Some condo corporation deductibles could exceed this amount as well. If you would like to know how much this deductible is, check the yearly general meeting minutes for your strata council, or simply ask a council member for the information. The cost of the deductible may vary, depending on what kind of damages are being claimed. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
You're responsible for insuring the cost of any improvements that have been made to your unit. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
Other types of building improvements that are commonly made, and you may want to protect, include the installation of wallpaper, crown mouldings, baseboards, closet organizers, and specialty lights or faucets. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Fixtures would include any permanently installed lights, window coverings, etc. Coverage for glass that is part of the unit itself is not always included, so check the bylaws in the policy. Coverage is available for both fixtures and glass.
Some condo owners do not fully understand what is included in their condo property deductible assessments. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Damages caused by water, fire, or earthquake are typically covered by this insurance. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
Owners of each unit in the building will likely be assigned a part of the deductible by the condo corporation, if there is significant damage to the building. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. In cases where the loss arises from something in your unit or because of your actions, you could be responsible for the entire deductible. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. Some condo corporation deductibles could exceed this amount as well. If you would like to know how much this deductible is, check the yearly general meeting minutes for your strata council, or simply ask a council member for the information. The cost of the deductible may vary, depending on what kind of damages are being claimed. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
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