If you have recently purchased a condo and are set to move in, you’ll need some type of condo insurance. The common mistake many new condo owners make is assuming this type of insurance is basically the same as homeowner’s insurance. It is not.
There are a couple of significant differences between general homeowner’s insurance and condo insurance.
Check with your condo board or management first.
Each condo association will have different requirements of their residents with regard to insurance options and coverage. You’ll find that living in a condominium means the entire community will share in certain expenses. One of these expenses would be the insurance deductible for the entire community for larger claims. This is usually a surprise to Toronto area condo owners who have never lived in this type of situation before.
Check with your condo association or management about what your rights and responsibilities are with regard to insurance. In most cases, the condo association will be responsible for covering any exterior building and common area issues. That could include lobbies, elevators, or property leading up to and around the actual unit itself.
The condo unit owner will likely be responsible for liability on their walkway, steps, and definitely within the actual unit itself. You may be responsible for any damage that is incurred to the exterior part of your house as well. This could include damage caused by high winds, accidents, or anything else.
Your condo association or bylaws may require you to repair any damage to the exterior portion of your condo within a set period of time.
Once you speak to your condo association or management, take the information you have gathered to a qualified insurance broker. This insurance broker will be able to sit down with you and go over the range of options and what you should focus on most. There will likely be a bare minimum of coverage that you will have to carry and this may be greater than what your financial lender requires.
Not having enough insurance on your condo could cause problems for you in the event of an accident, damage, or mishap within your condo unit itself. Your condo management may also require a review of the coverage you have, so make sure to avoid any penalties or further problems by carrying the ideal and optimal level of coverage possible.