March 25, 2024
Guidelines for insurance for condominium unit owners.
This memorandum is intended to provide you with some basic guidelines and information. Your insurance requirements should be determined in consultation with your insurance agent.
Betterments and Improvements
The insurance the Condominium Corporation maintains on your unit will only cover the unit as it was originallybuilt by the developer, excluding any extras or improvements acquired at the expense of the original purchaser. It does not cover the contents of your individual unit or locker, nor any betterments and improvements made to the unit by you, a previous owner of the unit or the developer. For example, these betterments could include wall-to-wall carpeting, mirrored walls, other wall coverings, remodelled kitchen or bathroom finishings or improved light fixtures and appliances.
If changes have been made to the condominium unit (apartment or townhouse) as originally supplied by the builder, you should ensure that these items are covered and your insurance increased by the amount of each improvement. There is no provision in the condominium’s policy for cost sharing. If you have replaced the kitchen cupboards, you must insure the incremental value of the replacement if you expect to have the damaged cupboards replaced by a like kind. The condominiums policy will only replace the cupboards in a similar quality to those originally supplied by the builder.
Liability Insurance
Your insurance program should include personal liability coverage to protect you against any actions by third parties for personal injury or property damage caused by any personal act or omission or failure to repair or maintain your unit. You should discuss the appropriate amount of insurance to carry with your insurance agent.
Living Allowance
If your unit is damaged to the extent that it is uninhabitable, your insurance policy should provide coverage for any living expenses you may incur as a result of not being able to reside in your suite as repairs are being made. Again, discuss the amount of coverage with your insurance agent. This coverage is not provided in the Condominium Corporation’s policy.
Sewer Backup Rider
If you have purchased a condominium townhouse you should confirm with your insurance agent that your policy of insurance provides protection in the event the sewers back up into your basement or other area of your home.
Contingent Building and Liability Insurance
This provision covers damage to your unit when the Corporation’s policy cannot respond or is insufficient. It is, in effect, excess coverage beyond that of the Corporation. The Corporation’s policy will always be primary because it will respond first. If the cause of the loss is not covered by the condominium, or if the extent of the coverage is insufficient (depending on the event) this contingent building insurance may help you out. It very rarely applies but it may be useful and is typically fairly inexpensive.
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