Insurance for Owners and Tenants
If you do not have insurance please call an Insurance broker or go online to arrange coverage.
Your home is your most valuable asset and it only takes one flood, accident or break in to make it worth having insurance.
If you do have insurance.
Check each year to make sure that you have sufficient coverage to cover new purchases and upgrades that you do to your home.
Condo owners make sure that you are covered for condo specific issues.
There are many perils that could affect our homes.
* Leak or Flood
Apartment Building Fire
* Plane Crash!!!
What should you insure?
The safest way to describe what fixtures you should insure is to list those that can be unplugged, sensibly disconnected and taken with you if you sold your home, for example refrigerators, washers and dryers, microwaves, sound equipment, together with all your personal effects, furniture, loose carpets, clothing, kitchen utensils.
These items should all be insured for what it would cost to replace them at today’s prices.
Additional Living Expenses
If you are forced to leave your home due to a loss that’s covered, you’ll need substantial sums to live elsewhere until the repairs are completed or you find permanent housing elsewhere.
Improvements and Betterments
You can buy additional amounts if needed but your basic policy should automatically include extra cover over and above your personal property cover for any upgrading that you may have acquired or completed yourself.
This protects you and your family living with you for your legal responsibility to others worldwide for claims arising from bodily injury, property damage, fees for legal defense, legal liability to occasional employees, voluntary property damage and voluntary medical payments
Comprehensive Form: The Policy Should Cover Loss Or Damage Caused By All Risks Of Physical Loss Or Damage And This Includes:
• Smoke, including from your fireplace
• Falling objects
• Malicious Acts
• Water Escape
• Rupture and Freezing
• Windstorm, Tornados and Hail
• Impact by vehicle or Airplane
• Cover on your goods while being transported
Features Should Also Include:
• Loss to contents of your food freezer
• Coverage for your home computer and software
• Credit card forgery or fraudulent use of your bank card
• Coverage for books or tools of your employer, that you may bring home but don’t own
Even though furs, jewelry, silverware, coin collections and other special items should be appraised and insured specifically, your policy should still include some automatic cover for theft of such property, as follows:
• Jewelry, watches and furs up to $3,000.00
• Silverware up to $5,000.00
• Stamp collections and coins collections up to $3,000.00
• Cash up to $500.00
• Bicycles up to $1,000.00 each
Why do I need insurance for my condo when the Strata Corporation has an insurance policy? Here are some excellent reasons:
- You need your own insurance to cover the upgrades you have made inside your unit, such as better carpets, hard wood flooring, granite countertops, appliance upgrades and built-in cupboards.
- You also need insurance for your furniture, artwork and other personal belongings as well as cost of living expenses if you cannot live in your home while repairs are made.
- Personal Liability insurance for visitors and guests
- Insurance for damages to your neighbours' property from your suite! For instance, water damage.
- Finally, and perhaps most important of all, does your insurance policy cover you for the Strata insurance deductible bill back? Typical Strata deductibles are $5K-$25K!
What does the Strata Corporation Insurance Policy typically cover?
The strata corporation policy insures the building exterior and common property inside and outside your unit. It also insures permanently affixed items inside your unit such as kitchen cabinets, floor coverings, appliances, intercom and other similar items that were permanently installed at the time the building was constructed.
The strata corporation’s insurer does not take into account any improvements or betterments that have been made to the unit by you or your predecessors.
As an example the unit could have originally had carpeting and it now has Brazilian cherry hardwood floors.
What other coverage do you need?
Protection for your share of special assessments for damage to the common property (not wear and tear) that may be brought for a variety of reasons. Once again this cover should be in addition to your contents cover.
Strata Policy Deductible
Some insurance Companies offer to pay for the deductible of the strata (building) policy if the deductible is the unit owners’ responsibility. The amount payable varies by company and some charge an additional premium.
Do you know how much your Strata Corp Insurance deductible is?
When you buy your condo insurance, bring a copy of the current strata policy along with you so you can ensure your coverage matches the deductible costs of the strata policy.
Strata Corporation Insurance Policy billed back to owner:
Strata Plan LMS2835 vs. Mari, where the strata was claiming a deductible amount because of a washing machine flood. The result of this court case is important because all strata owners may be called upon to pay the deductible whenever their actions have caused the damage, even though they were not negligent.
Landlords have relatively few legal obligations to compensate tenants for damage to or loss of their tenants’ personal possessions. Tenants, on the other hand, are responsible for harm they may cause to any part of the building in which they live or to others who live or visit there.
“Basic liability” and “contents” coverage are essential. A fire ignited by a tenant’s defective toaster, or flooding caused by a malfunctioning dishwasher, could cause a great deal of damage not only to the tenant’s unit, but to the entire apartment complex, potentially leaving the tenant liable for hundreds of thousands of dollars in damage.
For this reason, tenant insurance includes liability coverage comparable to that included in a typical homeowner policy. In terms of insuring your own belongings, you may think you have very little of value, until you have to replace it all.
A few pieces of furniture, no matter how modest, can easily cost several thousand dollars to replace.
Your clothes, which you have likely accumulated over several years, would also cost thousands to replace all at once.
If you bought a CD player on credit and it is destroyed by fire or stolen, you are stuck paying the balance of your debt, and will likely want to spend several hundred dollars more on a replacement.
For all the reasons above, it is recommended that all tenants insure the contents of their homes.
Please call an insurance agent for more information.