Condominium owners have special insurance needs. At first appearance the condominium concept is fairly simple - numerous owners sharing in common property. Unfortunately, your unit ownership and insurance requirements are impacted upon by at least three legal documents:
- The Condominium Act of Alberta
- A document called the Declaration. (A Declaration is originally filed by the builder and can be likened to a charter a corporation files for incorporation. It describes the legal entity created by incorporation)
- Your Condominium Corporation Bylaws
Each legal document may modify what you are responsible to insure as a unit owner. It may be that you need to insure a portion of the condominium structure. This is best determined from a thorough review of the legal documents surrounding your ownership of the Condominium. Here are some things you should consider in choosing a condominium insurance program. Your Condominium Insurance is designed to do two basic things: Protect Your Property, Protect You From Legal Actions.
Protecting Your Property
Broad Coverage - Obtain the broadest coverage. Not all policies are created equal. Some insurance companies or agents sell policies that offer limited protection. We take pride in ensuring that we arrange the best possible program to fit your individual circumstances.
Insure to Value - Condominium Insurance policies are designed to replace your belongings as a result of loss or damage. Accordingly, you need to determine the cost of your personal effects as if you had to go out and buy them tomorrow. Insurance companies will only pay up to the amount of insurance you purchase. It is up to you to make sure you have sufficient insurance. We have inventory booklets to assist you with determining your proper limit of insurance.
Replacement Cost For Your Personal Property - In most instances "New for old" coverage is available for your personal property. Most of the policies we arrange include Replacement Cost protection. All you have to do is make sure that your amounts of insurance are sufficient to replace your property at today's prices.
Sewer Backup Protection - One of the most unpleasant losses to your residence may involve the backing up of water (among other things!) from your sewer main. Coverage is available to protect you from the cost of repairing the damage and replacing your personal property from Sewer Backup.
Unit Owners Additional Protection - This is "just in case" coverage to assist in protecting you in the event the insurance your Condominium Corporation has arranged on the structure is inadequate.
Improvements and Betterment Insurance - It is quite likely the policy the Condominium Corporation arranged on the structure does not cover any improvements or betterments made by unit owners after original construction. If you are not the first owner of the unit you may be unaware of any improvements made by a previous owner. Also, some Condominium corporations make the unit owner responsible to insure the portion of the entire structure they occupy.
Loss Assessment Coverage - Provides protection from special assessments arising from damage to the common property owned by the Condominium Corporation.
Protecting You From Legal Actions
All residential policies include coverage for Personal Liability protection. You may unintentionally injury someone or their property as a result of your actions. Personal Liability coverage will protect you if it is determined you were responsible. In addition, even in the event of false accusations, the policy will provide for the cost of legal expenses in raising your defence. Of course the policy contains limitations and conditions as to the types of acts it will protect you for. For example, intentional or criminal acts are not covered.
Typically, Condominium Insurance is one of the more inexpensive forms of insurance. Coverage can be obtained for as little as $7-12 per month.