If you have recently finalized purchasing your dream condo, it is time to start shopping for a condo insurance policy. There are a few common myths and questions surrounding condo insurance which you should be aware of so that you have the right information to get the coverage you need to protect your assets.
#1 Does Condo Insurance Only Protect My Belongings?
Similar to home or tenant insurance policies, condo insurance protects much more than just your belongings. It will generally cover additional living expenses, (in the event you need to move while repairs are being made after an insured loss) and liability claims. Condo insurance also includes coverage for the additional cost of improvements you’ve made to your unit.
#2 Do I Need Insurance If My Condo Corporation Already Has Insurance?
Usually, a condo corporation’s master policy is not designed to protect you, any improvements that you have made to your unit or your belongings. Condo corporation insurance is designed to cover damage to the building itself and common areas such as hallways, rooftop lounges, gym and pool areas. As a condo owner, you should have your own insurance policy to cover what’s inside your own unit.
#3 Will A Condo Policy Cover Any Type of Water Damage?
In most cases, coverage for sewer backup or overland water damage (this includes overflow from heavy rain, rivers, and lakes) is not automatically included in your condo insurance policy. However, it maybe available as an add-on to your policy.
#4 Will Condo Insurance Policies Cover All Personal Belongings in My Unit Including Expensive Jewellery?
Insurance policies usually have a limit for all jewellery combined which includes gems, watches and fur items. If your jewellery collection adds up to more than what your coverage includes, you may wish to consider adding additional coverage. Furthermore, make sure you read your policy as other categories may have coverage limits as well such as collectibles, silverware and sports cards.
#5 If I Rent My Condo, My Rented Condo Insurance Policy Will Cover My Tenants as Well as Their Belongings
If you decide to become a landlord and rent your condo, it is important to know that your rented condo insurance may cover damage to your appliances and unit but will not cover your tenants contents. Renters need to have their own insurance policy to protect their belongings, provide their own liability coverage and cover their own additional living expenses. Before you allow a renter to sign a lease agreement, you may want to ask for proof of renters insurance.
If you are ready to shop for condo insurance, contact a knowledgeable professional at Bow Valley Insurance today. We can do the rate research, shopping and help you compare coverage and prices so that you can make an informed decision.