When buying a condo, there are many factors to consider. One of these factors is condo insurance, and what's included in your coverage. Should a loss occur, the condo corporation is responsible for rebuilding the property to its original glory, which would usually include the flooring, countertops, and the "fixtures and finishings" that go into the property.
This means that normally, your condo policy would mainly offer coverage for your contents, liability, and some other neat things like “betterments and improvements”. Improvements to your property includes things such as any upgraded counters, cabinets, and floors that were installed later - something that would not be covered by the condo corporation.
What do you need to know about your condo's master policy?
A condo master policy is an insurance policy that the condo corporation holds for the entire building. Recently, there have been cases where the condo master policy will no longer cover the replacement of finishings such as flooring, cabinets, and fixtures after a loss. As a result, Insurance companies are now strongly encouraging condo owners to understand what exactly is covered under their condo corporation’s master policy to ensure they make an informed decision when setting up their own personal condo policy. If a condo owner is responsible to replace these items in the event of a loss, it can easily increase the amount of contents you need covered under your personal policy.
We recommend condo owners take the following steps:
- Know what damages your condo corporation is responsible for repairing or replacing (ask for a copy of the master policy)
- Review what is covered under your condo insurance with your broker
- Regularly review this information, as coverages and wordings can change
We at Armour Insurance are here to help!
If you'd like to discuss what's included in your condo policy, or if you'd like a quote and more information on condo insurance, give us a call at 1-855-475-0959 to speak with one of our condo insurance experts.
