Yes, your condo corporation covers insurance for the building and will rebuild your unit to builders’ grade in the event of a loss, but that is it. They will not cover your contents, your liability if you are sued, your units upgrades, anything done above “builders’ grade and chances are, you could be on the hook for a portion of the condo corporations’ deductible if there is a claim in a common area.
Below are the coverage sections of a condo insurance policy that are important to you, the condo owner.
This is straight forward, if you own it, you need insurance for it. If your condo were to burn to the ground, the condo corporations’ insurance policy does not cover anything owned by you (furniture, electronics, clothing, etc. etc.). You need to cover your belongings on your insurance policy.
Additional Living Expenses
If there was a claim in your building and you had to move out while repairs are being done, your condo corporations’ insurance does not pay for you to rent elsewhere. Additional living expense coverage is needed to cover the costs of a short-term rental or staying in a hotel after a claim forces you out of your condo.
Liability on condo insurance is the same as liability on home owners’ insurance. It covers you for awards against you from a lawsuit where you are deemed responsible for causing personal injury or property damage to others. Liability coverage does not just cover you in your home, it covers you anywhere in the world if you are sued for causing injury or property damage to others. This means it is personal liability insurance as well as home insurance liability coverage.
Betterments & Improvements
If your condo is damaged after a claim, the condo corporations’ insurance policy will rebuild the condo to builders’ grade. Your insurance policy will cover the finishes and anything done to the condo that is above builders’ grade. Hardwood floors, painted walls and kitchen cabinets are examples of items that would be covered under betterments & improvements.
Loss Assessment Coverage
Depending on the contract with your condo corporation, owners of the units may be responsible for either all damages to common areas resulting from a claim, or the deductible for damages to common areas.
Your insurance policy provides coverage for common area damage and deductible that your condo corporation may charge you. It is best to review your condo corporation contract to see exactly what you (the condo owner) is responsible for.