Risk & Business Magazine CMW Insurance Fall 2015 | Page 28

Personal Property and Contents
Why Condo Unit Owners Need Their Own Insurance
BY: GRANT PRITCHARD, CLIENT EXECUTIVE, VICE PRESIDENT, CMW

Many condo unit owners overestimate the extent of coverage
they have under their strata’s insurance. While there is
comprehensive coverage for the original building structure, these
policies exclude a number of risks facing unit owners:
Loss or damage to your personal property and contents
The strata’s property insurance will not cover your contents,
regardless of the cause of loss or damage. Unit owners are also
responsible to remove contents as required to repair the building,
potentially incurring moving and storage costs.
Additional living expenses
You may be required to re-locate during repairs or reconstruction
following a loss or damage to your unit. The strata’s insurance
will not reimburse you for the costs of your temporary
accommodations.
Upgrades done by unit owners
The strata’s insurance only insures the building as originally
constructed.

Personal liability
The strata’s liability insurance only covers claims pertaining to
common property. Liability arising from a unit or a unit owner’s
actions is not covered. You would be responsible for your own
defense costs if sued.
Loss Assessment and Unit Additional Protection
You will be responsible for the strata’s deductible if a claim
arises from your unit. This has been increasingly common due to
water damage stemming from leaks in individual units. Be sure
to secure ‘Loss Assessment’ coverage up to your strata’s water
damage deductible.
Should a loss or damage occur to the original structure of your
unit that does not exceed the strata deductible, the strata is
typically not responsible for the repair under the Strata Property
Act and Standard Bylaws. Unit Additional Protection steps in
such cases when the strata’s policy will not respond.
Earthquake Deductible Assessment
A strata’s earthquake deductible is typically 10 - 15% of the
insured property value in the Lower Mainland. In the event
of an earthquake, you will be assessed for your share of the
strata’s earthquake deductible and could be forced to pay tens of
thousands out of your own pocket.
Ask your broker to secure a condo unit owner policy that will
protect you from these risks. Policies vary by provider so ensure
your policy has coverage for water damage, sewer backup, loss
assessment and unit additional protection.

Grant Pritchard is a Client Executive, Vice President at CMW.
With over 15 years of experience in the insurance industry, Grant
specializes in providing custom insurance and risk solutions
for residential and commercial stratas. He is an associate
member of the Professional Association of Managing Agents
and an active participant with the British Columbia Apartment
Owners & Managers Association. Contact Grant at gpritchard@
cmwinsurance.com or 604 484 2908.

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RISK & BUSINESS MAGAZINETM FALL 2015