Condo Owner Insurance

[uto123]

As a soon-to-be condo owner, I just started shopping around for insurance but I'm not sure what to look for.
I would be open to hearing any recommendations in regards to insurance companies or policy coverage.

I'm not so worried about the rates so much as the service provided by the insurance companies (ie. in the event that something does happen, I don't want to be fighting with them over claims).

One question that I have so far is, do most insurance companies provide coverage for fire/water damage? What if the damage is caused by a neighbouring unit?
Also, why does it seem to me that the condo owner insurance doesn't seem to cover the value of the property but only the articles within your property?
For homeowners, StateFarm says: We recommend that you purchase an amount of homeowners insurance coverage at least equal to the estimated replacement cost of your house.

But for condo owners, it doesn't recommend coverage for the replacement cost of your condo.

Thanks in advance.

 

[DSC]

As a soon-to-be condo owner, I just started shopping around for insurance but I'm not sure what to look for.
I would be open to hearing any recommendations in regards to insurance companies or policy coverage.

I'm not so worried about the rates so much as the service provided by the insurance companies (ie. in the event that something does happen, I don't want to be fighting with them over claims).

One question that I have so far is, do most insurance companies provide coverage for fire/water damage? What if the damage is caused by a neighbouring unit?
Also, why does it seem to me that the condo owner insurance doesn't seem to cover the value of the property but only the articles within your property?
For homeowners, StateFarm says: We recommend that you purchase an amount of homeowners insurance coverage at least equal to the estimated replacement cost of your house.

But for condo owners, it doesn't recommend coverage for the replacement cost of your condo.

Thanks in advance.

A condo owner is, or should, be covered by TWO policies:

A The Corporation itself must, by law, insure the common elements against all major perils, and such other perils as the Act, Declaration and by-laws stipulate. This policy is known as the Master Policy and has deductibles. The common elements, the basic Units, and the building itself must be insured by the Corporation to full replacement value as they were at the time the developer registered the property. You pay for this insurance through your monthly fees and the Corporation should send you a copy of this insurance certificate annually.

B. The Unit owner should also have insurance for any 'improvements' to their Unit or anything that is not in any Standard Unit By-Law (which often exclude ALL floor coverings) and should have personal property and liability insurance.

 

[uto123]

A condo owner is, or should, be covered by TWO policies:

A The Corporation itself must, by law, insure the common elements against all major perils, and such other perils as the Act, Declaration and by-laws stipulate. This policy is known as the Master Policy and has deductibles. The common elements, the basic Units, and the building itself must be insured by the Corporation to full replacement value as they were at the time the developer registered the property. You pay for this insurance through your monthly fees and the Corporation should send you a copy of this insurance certificate annually.

B. The Unit owner should also have insurance for any 'improvements' to their Unit or anything that is not in any Standard Unit By-Law (which often exclude ALL floor coverings) and should have personal property and liability insurance.

Thanks for the clarification.
But should the condo building burn down, what's to say that I am covered for a (1+1) instead of a studio?

 

[DSC]

Thanks for the clarification.
But should the condo building burn down, what's to say that I am covered for a (1+1) instead of a studio?

You are insured for the % of the Corporation that you own. Just as if the condo corporation dissolves and the $$ are distributed you will get a share based on your percentage share of the Corporation. (i.e. your % share of the common element fees).

 

[uto123]

You are insured for the % of the Corporation that you own. Just as if the condo corporation dissolves and the $$ are distributed you will get a share based on your percentage share of the Corporation. (i.e. your % share of the common element fees).

Thanks, that clears things up.
Would you know if there is a 'better' insurance company to go with than another?

I don't mind paying a little bit of a premium if that means I'm going to get hassle-free claims. Last thing I'd want is denied claims.

Out of curiosity, does anybody get sewage backup and earthquake insurance for condos?

 

[DSC]

Thanks, that clears things up.
Would you know if there is a 'better' insurance company to go with than another?

I don't mind paying a little bit of a premium if that means I'm going to get hassle-free claims. Last thing I'd want is denied claims.

Out of curiosity, does anybody get sewage backup and earthquake insurance for condos?

Almost all insurance companies offer "condo owner packages" that takes account of the Master policy . If I were you I would get a policy through an insurance broker as this may give you abetter rate and some 'quality control'.

 

[rbt]

Out of curiosity, does anybody get sewage backup ... for condos?

I didn't bother because it was only if city services backed up. If city sewage is backed up enough to reach my unit high in the sky, then we're in huge trouble.

 

[W. K. Lis]

Generally, the condo owner should insure themselves for the contents within the suite. Same for a rental tenant who rents an apartment. If there was a fire within a next door unit, the insurance will pay for hotel or some other long-term stay and for replacement of the contents, including clothes because of smoke damage. Some rental tenants don't, but if there was a fire (even next door), they are on their own to find accommodations elsewhere, and they may end up begging for a place or even clothes.

 

[tripwire]

Definitely make sure to get water/fire damage. With condo's, water leaks/floods from above or neighbouring units happen more of then we'd like. And yes, the condo association insurance will cover everything flood related except for the flooring (including quarter rounds). My unit recently received enough water damage from the person above, that my entire floor has to be replaced. What I found out is all repair cost is on me - I'm paying for my deductible (and hopefully my premium won't go up). Originally, I thought that since it was his fault, his insurance would cover my damages as well, but apparently that's not the case.

But the condo manager was very good at getting the guys with the moisture detection and fans in, and then any repair work required (drywalling and painting a hole cut in the ceiling to help drying). Apparently, some of that cost will be billed to the person at fault.

 

[DSC]

To clarify Tripwire's useful comments. The Condo Corp MUST repair the common elements and the Unit back to the level of a "standard unit". They can also claim some of this cost back from the person at fault. Most, but not all, Corporations have Standard Unit By-Laws that describe the standard unit and most (all?) exclude floor coverings. Older Corporations may not have passed such a by-law and in these buildings the Corporation MAY also be responsible for flooring. If your insurance company did not claim-back the costs of your new floor from the Unit above they may have a 'no-fault' agreement with their insurer.

 

[tripwire]

Thanks @DSC for the clarifications.

 

[uto123]

Thanks for all the helpful comments.
Now if only I can figure out which insurance company to go with...

 

[Ex-Montreal Girl]

Get sewage back-up if your car is in an underground garage. No condo will cover any damage to your car there. That is your car insurance. But water back-up is a grey area. For the small amount you add to your premium for it, it's worth it.

Once a year, your condo will distribute an insurance document outlining how much the building is insured for. Fivide by the number of units and that's basically how much you will get.

Your declaration will outline what the basic unit is, i.e. what is covered by the corporation. Standard finishes only. So, if you upgraded to stone counters or whatever, they're your problem. So the insurance you want -- and there are condo packages -- cover your contents like any homeowner's policy and restoring your finishes and upgrades. For example, if you have high end plumbing fixtures or floors.

As for which company to go for, Chubb is the best but it ain't cheap. We use a broker and have used these folks since 1993. They handle the insurance companies and the claims so you don't have to.