Insurance for your strata building is paid for and maintained by your condo corporation, through the strata council. Specifications on the original construction of the building are used to calculate the amount of insurance needed. If you, or any earlier owner of your condo has installed granite counter or hardwood floors for example, these modifications will not be covered by the policy owned by the condo corporation.
If you have made improvements on your unit yourself, insuring the extra costs of these improvements is your responsibility. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. Your unit will only be repaired to the original building specifications if damages occur, so it makes sense to purchase building improvements protection. In a case of a burst pipe, your strata's insurance company would only be required to install the original carpet or flooring, and they would not pay for your hardwood floors to be replaced.
Additional coverage would be required for home modifications like wallpaper, crown mouldings, baseboards, closet organizers, lights, and faucets, if you want to have full protection for your home. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Fixtures would include any permanently installed lights, window coverings, etc. In some condo bylaws, glass that is part of the unit may not be covered. Glass and fixtures can easily be covered by your personal insurance.
Some condo owners do not fully understand what is included in their condo property deductible assessments. Strata buildings are covered by most condo corporation's insurance policy, as we have stated. Protection against damage from things like water, fire, and earthquakes are generally included in these policies. As with most types of insurance, the strata's policy will contain a deductible.
As a unit owner, if the building suffers a loss, the condo corporation may assess each unit owner a portion of the deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
It's always best to make sure you have the broadest form of insurance available. The deductible could also be the responsibility of the homeowner if the loss or damage was somehow caused due to owner negligence of some kind. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
Depending on your building, the condo corporation's deductible could range from $2,500 to $25,000. Some condo corporation deductibles could exceed this amount as well. To determine the amount of this deductible, talk to members of the strata council, or take the time to go over the minutes of the general meeting. The cost of the deductible may vary, depending on what kind of damages are being claimed. Earthquake or water damages are usually higher than deductibles for damages caused in fire. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
If you have made improvements on your unit yourself, insuring the extra costs of these improvements is your responsibility. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. Your unit will only be repaired to the original building specifications if damages occur, so it makes sense to purchase building improvements protection. In a case of a burst pipe, your strata's insurance company would only be required to install the original carpet or flooring, and they would not pay for your hardwood floors to be replaced.
Additional coverage would be required for home modifications like wallpaper, crown mouldings, baseboards, closet organizers, lights, and faucets, if you want to have full protection for your home. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Fixtures would include any permanently installed lights, window coverings, etc. In some condo bylaws, glass that is part of the unit may not be covered. Glass and fixtures can easily be covered by your personal insurance.
Some condo owners do not fully understand what is included in their condo property deductible assessments. Strata buildings are covered by most condo corporation's insurance policy, as we have stated. Protection against damage from things like water, fire, and earthquakes are generally included in these policies. As with most types of insurance, the strata's policy will contain a deductible.
As a unit owner, if the building suffers a loss, the condo corporation may assess each unit owner a portion of the deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. For instance, if an earthquake occurs and you don't carry earthquake insurance on your condo unit owner's policy, you will not have coverage for your portion of the condo corporation's deductible, even if you've purchased condo deductible assessment coverage.
It's always best to make sure you have the broadest form of insurance available. The deductible could also be the responsibility of the homeowner if the loss or damage was somehow caused due to owner negligence of some kind. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
Depending on your building, the condo corporation's deductible could range from $2,500 to $25,000. Some condo corporation deductibles could exceed this amount as well. To determine the amount of this deductible, talk to members of the strata council, or take the time to go over the minutes of the general meeting. The cost of the deductible may vary, depending on what kind of damages are being claimed. Earthquake or water damages are usually higher than deductibles for damages caused in fire. Be sure your condo owner policy includes protection for condo property deductible assessments and that your limit is sufficient.
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