There are two insurance policies that all condo owners need to be aware of.
There is the corporation's insurance policy. That policy is compulsory for the condo corporation and all condo's have it.
Then there is the individual insurance policies that all owners need. Unit policies are
not compulsory and a surprising number of unit owners don't have any.
Not having insurance is dumb but who said you have to pass an IQ test
before you can buy a condo?
There are lots of problems with condo insurance.
There is the corporation's insurance, your insurance and the other
owners' insurance. If there is a water leak and several units get
flooded, the insurance issues can get very complicated. Someone is responsible to pay the insurance deductibles. Deciding who that person is can get tricky.
"You know what? No insurance claim should be that difficult," says
Kevin McIntyre, president of the B.C. Insurance Broker’s Association.
"... when you have three different adjusters involved in one probably
relatively small loss, and a whole bunch of insurance companies and a
property manager involved and a strata council involved—it's just too
much. It's just too confusing—and frankly it shouldn't happen."
Many condo owners are also under-insured. More than half of B.C.'s
condo holders do not have homeowners' insurance, according to McIntyre.
That is a risky situation, says Tony Gioventu, of the Condo Homeowners'
Association, because if an owner is responsible, they are likely
responsible for paying a deductible that could be anything from $500 to
So make sure you have adequate insurance.
The owners in this small condo complex in York Region had the bad luck of being burnt out twice due to careless smoking. http://bit.ly/19SunBb
Now they are being penalized by having to wait for their building to be
rebuilt—for a second time—and by being hit with a huge increase in fire
Guess what? The condo corporation's insurance policy does not pay your living expenses if
you have to evacuate your unit because of water or fire damage. Your
individual policy may pay for some costs but not for all.
top contents chapter previous next