Here's Why You Need Condo Insurance

Condo insurance can be confusing. Are unsure about your condominium needs? Are you confused about what insurance you are responsible for and what insurance your condo corporation is responsible for? Are you confused about your condominium insurance needs? Are you wondering if the condo corporation is responsible for your condominium insurance? What about renters' insurance for tenants who don't own their own buildings? It seems like a lot to consider, but a handy guide provided by CondoEssentials can help show you the ins and outs of the different kinds of coverage you might need based on your specific circumstances. Read on so you can learn more about your condo insurance policy and the risks you need to make sure you have protection against when you buy a condominium.

Who Needs It?

You do. It doesn't matter whether you live in a house, an apartment, a condo, or an RV, you need insurance. That doesn't mean, however, that you will always need the same kind of insurance, and sometimes you aren't responsible for insuring the whole of the building: the condominium corporation's insurance will protect the building envelope and common use areas-but, as a condo owner or tenant, you still need condominium insurance to protect your individual condo unit and its contents.

What does condominium insurance for home owners cover? Your top risks are:

1. Your contents: Condo insurance covers damages to the contents of your unit up to a pre-defined value. This protects your contents from such risks as such as flood damage that can be caused by an above-floor neighbour leaving a tap on, damage from a burst pipe, or damage and theft as a result of a break-in.

Property upgrades: Condo insurance also covers any condominium upgrades you've invested in, such as hardwood floors, upgraded cabinets and kitchen counters, moldings, etc.

Liability: Condo insurance also covers your finances when you are at fault. For instance, if you are sued for negligence for flooding your neighbour's unit or for an oven fire that damages other units. Condominium insurance's third party liability can protect you against this risk.

Locker: Many don't realize that your condo insurance actually covers the contents of your storage locker, too!

Living expenses: Do you have a plan of action in case a flood, fire, or other disaster renders your property uninhabitable? Your condo insurance does. Your insurer will provide you with a reasonable amount to spend on accommodations while your condominium is being repaired.

Property assessments: Your condo corporation's insurance should cover damages to the exterior building, but in some cases, when the condominium corporation does not have the funds to cover the consequences of a particular accident (i.e.: roof damages due to strong hail or a storm), they may pass some of the repair costs to the condo unit owners in the form of special assessments. These can be covered by your condominium insurance, too.

Fair rental value: Your condo insurance policy will also protect your rental income in the event that an accident prevents you from being able to rent out your space. You'll receive a rental value based on comparable units in the air to cover your loss if rental income.

What's Covered Under Tenants and Renters Insurance?

Tenant insurance, also called renters' insurance, is required by most landlords. It's designed to cover the following risks:

1. Your contents: From your laptop to your clothes, and from your shoes to that expensive wine collection, a tenant insurance policy insures your personal items up to a particular value. Remember, however, to get a separate insurance endorsement for any of the expensive items you own, like your jewelry, that wine collection, or the expensive artwork you own.

Liability: You don't have to own the property you're living in to get sued for damages you may cause, like flooding the condo units below you or causing a fire that damages a couple of units. Condominium liability coverage protects you in cases like this.

Living expenses: If a fire, flood, or other damages that are listed in your policy cause your unit to become uninhabitable, your insurance will cover reasonable living expenses, meaning the cost of finding alternative accommodations, either for the duration of the repairs or for a set number of months.

How Much Does Personal Condo Insurance Cost? It isn't as expensive as you might think! Considering the level of protection it provides, condo insurance is actually one of the more affordable kinds of insurance out there. You can