Why condo owners need household insurance
September 18, 2013
As a condo buyer you may be aware that part of the maintenance fees you pay monthly, in most Toronto condos, goes towards your condo corporation’s insurance policy… but do you know what it doesn’t cover??
Allstate Insurance recently revealed that surprisingly, a large percentage of condo owners don’t know what a condo ‘s corporation insurance policy covers or that they need a separate policy for their belongings and upgrades that have been made to the unit. Basically, in a fire or flood, your condo corporation’s insurance MAY cover restoration of your suite to the unit’s original state but that’s not so in every corporation’s policy so make sure you check. For example, MOZO Condos on Adelaide has an insurance policy that only covers the concrete shell of the unit you purchase… all finishes including drywall must be covered by your own contents insurance policy. Regardless of what’s in the corporation’s policy, sadly, what most buyer’s aren’t aware of is that they are even required to buy their own contents insurance at all. It’s definitely something every Realtor should make their buyers aware of. If the worst were to happen and you lose everything, your contents insurance will cover your personal possessions and can even cover the cost of all finishes above and beyond a condominium’s “standard finish”. Definitely check with your insurance broker as to the different policies available to you.
If you need the name of a reputable insurance broker, please just ask… I’ve got some good ones.
Click here for an article from Mark Weisleder on the above subject.