Condo insurance is used for protection of personal belongings and the improvements made inside a condominium unit. It will also provide coverage against costs arising from injury to visitors inside your unit and damage caused to other units due to your negligence within the building. Condo insurance isn’t mandatory, but there are many good arguments that can be made for having condo insurance.
What About the Condo Building Insurance?
One question that often arises is whether the condos building insurance is enough protection for an inhabitant. The fact is that condo building insurance or shared insurance policy only covers the common areas of the building such as the lobby, hallways, elevators, recreational areas etc. This policy doesn’t cover the inhabitant property or accidents that occur within the condo unit. As such, the shared insurance policy will not cover any personal property or liability.
Types of Condo Insurance
There are several types of condo insurance that provide protection against different scenarios. “All Risks” insurance covers the contents of the unit against all types of damages unless otherwise specified. Personal Liability will protect you from charges arising from the injury or loss of another person while inside your unit. Contents Insurance covers the replacement costs of the contents of your unit, even if it is outside the unit. For example, if your jewellery gets stolen while on holidays. Replacement Cost insurance will replace any lost or damaged goods at their original cost without depreciation being taken into account. Additional Living Expenses coverage will pay for expenses incurred if you are forced to leave your unit for a length of time. Loss Assessment helps cover your portion of the costs shared by all unit owners when there is damage to common areas or property.
Factors Affecting Insurance Rates
Some of the factors that will affect the cost of your insurance policy will be things such as the age of your building, the value of your belongings and upgrades within your unit or the number of insurance claims you have made in the past.
If you have special or valuable items, you might need separate policies. Make sure to let your insurance company know about expensive jewelry, musical instruments or things like art or collectables. If you rent your unit out occasionally using a service such as Airbnb, you’ll want to let your insurer know. If you aren’t the owner of the condo unit, but a renter, you’ll want to consider tenant’s insurance rather than condo insurance.
To find out more about condo insurance, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.