CONDO INSURANCE
“ When selecting condo coverage , it ’ s important to determine what is covered by your association ’ s master policy and what items are your responsibility .”
event of a claim on the condo ’ s master policy . Many times , individual condo owners are responsible for paying a percentage of the deductible . In the past , master policy deductibles have commonly hovered around $ 5,000 , but , recently , deductibles in some regions have reached upwards of $ 50,000 . Two issues arise for individual unit owners when master policy deductibles are high :
• Paying a percentage of a large deductible can be expensive .
• The insurance association may choose not to file a claim if the deductible amount will not be reached .
It is imperative that you ask for a copy of the association ’ s insurance agreement before purchasing your unit , so that you are aware of your responsibilities and the amount you need to pay for the association deductible . Ask these questions to learn more about the deductible on your condominium ’ s master policy and how it will impact you :
• What is the deductible on the master policy ?
• How are individual unit owners responsible for damage to areas covered by the master policy ?
• If a claim is filed on the master policy , are individual unit owners responsible for paying a portion of the deductible ? If so , how much ?
DETERMINE THE AMOUNT OF PROPERTY PROTECTION YOU NEED After you ’ ve determined what ’ s covered by the association ’ s master policy , a personal condominium policy will help to safeguard you from losses to your personal property and the interior of your unit . Calculating the value of your belongings can be difficult , but these three easy steps will help you .
1 . Create extensive records of your possessions . It is recommended that you take close-up , wide-shot pictures of individual belongings . Then make an item-by-item list so that , if necessary , you can quickly skim it to see what items are documented in the photos . Some people find it easier to keep their lists of belongings grouped according to the rooms they are located in . Others group their belongings by item type , such as jewelry , artwork , books , furniture , etc . However you decide to record your possessions , it ’ s a good idea to store the information in at least two different places . Consider keeping a hard copy of all of your lists and photos in your office at work and also saving them to a folder on your computer .
2 . Learn the difference between policies that provide “ actual cash value ” and “ replacement value .” With “ actual cash value ,” once an item is lost , you ’ ll receive the current , depreciated value of the item . If your policy provides you with the “ replacement value ,” you ’ ll receive the amount it costs to replace the item at its pre-loss condition with another item of comparable value .
3 . Do your research . Even though your kitchen table may have cost you $ 500 when you first bought it , a comparable new one could cost you double that amount , so that ’ s the amount you want to be covered for . Check out websites and local furniture stores to see what comparable prices are .
DETERMINE THE AMOUNT OF LIABILITY PROTECTION YOU NEED In addition to your belongings , the liability portion of your policy covers you against lawsuits for bodily injury or property damage that you or a family member — and , in some cases , a pet — causes to other people . It pays for both the cost of litigation and any court awards , up to the limit of your policy , and covers you at home or away .
It is important that you have adequate liability coverage , so if you require more protection than is provided under regular policy limits , consider an umbrella policy , which provides broader coverage when liability limits are exhausted in underlying policies .
ADDITIONAL COVERAGES TO CONSIDER There are a lot of different additional coverage options to consider , like unit assessment coverage , sewer backup and flood or earthquake coverage . Talk to Knight Archer Insurance Ltd . to determine your best options .
Make sure to set aside some time each year to review your policy and ensure that the limits and coverage you have selected are right for you . Evaluate your needs based on your provincial regulations , the value of your condo and personal belongings , the money you have in savings and the amount of risk you feel comfortable taking . Then , make sure to read the entire insuring agreement — especially the exclusions — to guarantee that you are covered in every situation that is necessary for your lifestyle . If you have questions about your condo insurance policy , contact Knight Archer Insurance Ltd . today . +
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