The Importance of Condo Insurance
There is a common misconception that a Condo Corporation’s insurance policy provides the coverage and protection for the needs of the individual condo unit owner. As well, many unit owners have minimal contents, and therefore they often feel that an individual condominium insurance policy is not necessary.
We are often asked the question “Why Do I Need Condo Coverage?”.
Condominium insurance policies are actually quite complex and extensive in the coverage they provide to the individual unit owner.
Firstly, we would like to define what a condominium corporation is, or does. The corporation is responsible for managing operations, business affairs, and property interests of the unit owners. Most condominium corporations will establish a board of directors, set maintenance fees, maintain a reserve fund, hold unit owner’s meetings, and maintain common property.
The condominium corporation’s insurance policy typically covers the following:
A personal condominium insurance policy purchased by a unit owner typically covers the following:
It is important to note that under an individual condominium insurance policy, the coverage is subject to the limits stated in the policy, as well as the policy deductible.
Individual condominium insurance policies are comprehensive and inexpensive. Most companies offer policies with a minimum content limit of $30,000 and premiums starting around $30.00/month. Rented condominium policies are also available to landlords who own and rent out their condo.
Should you have any questions regarding condominium insurance policies, or if you would like a complimentary review of your coverage, please do not hesitate to contact us!
The Costen Insurance Team