Condominium Insurance
Condominium owners have special insurance needs. At first appearance the condominium
concept is fairly simple - numerous owners sharing in common property.
Your unit ownership and insurance requirements are impacted upon by at least
three legal documents.
1. The Condominium Act of Alberta or Saskatchewan
2. A document called the Declaration. (A Declaration is originally filed by the builder and can
be likened to a charter a corporation files for incorporation. It describes the legal entity created
by incorporation) and often establishes the exact state of property at the time of incorporation.
3. Your Condominium Corporation Bylaws
Each legal document may modify what you are responsible to insure as a unit owner. It may be
that you need to insure a portion of the condominium structure. This is best determined from
that you need to insure a portion of the condominium structure. This is best determined from
a thorough review of the legal documents surrounding your ownership of the Condominium.
When you purchased your Condo this should have been fully explained by your lawyer and
you should have received a copy of each of these documents.
Ongoing meetings are conducted by the Condominium Corporation to address issues as
they arise. Annual meetings are also held to elect officers and appoint an auditor.
Protecting the Condo Corporation
Protecting Your Property
Condo Corporation Property - The condo corporation will insure the building, fences,
and other structures owned and controlled by the Corporation. The insurance they purchase
will be based on the state of the building as described in the Declaration made at the time of
incorporation. The insurance for the condo corporation will be arranged by the directors
and will be paid by the Condo Corporation. (Part of your condo fees will go to paying for this insurance).
If any improvements are made to the property in general areas the insurance policy will
be adjusted accordingly, however, any improvements made within your suite will not be
insured by the Condo Corporation - you must insure them.
and other structures owned and controlled by the Corporation. The insurance they purchase
will be based on the state of the building as described in the Declaration made at the time of
incorporation. The insurance for the condo corporation will be arranged by the directors
and will be paid by the Condo Corporation. (Part of your condo fees will go to paying for this insurance).
If any improvements are made to the property in general areas the insurance policy will
be adjusted accordingly, however, any improvements made within your suite will not be
insured by the Condo Corporation - you must insure them.
Liability Insurance - The condo Corporation will have protection from law suites associated
to events which could occur on common property. This may be an accident in the parking
lot where someone is injured. You, as an individual have the right to sue the condo corporation,
and the Condo Corporation has the right to sue you should you be directly involved in any loss.
It is important that you have individual liability protection.
Here is a link to why you need individual coverage.
to events which could occur on common property. This may be an accident in the parking
lot where someone is injured. You, as an individual have the right to sue the condo corporation,
and the Condo Corporation has the right to sue you should you be directly involved in any loss.
It is important that you have individual liability protection.
Here is a link to why you need individual coverage.
Additional Coverage - Condo corporations elect directors and officers to deal with the
day to day business of the Corporation. If you are elected as a director you may be held
responsible for the decisions you make as a director. Individual unit owners have a right to
seek compensation for any error you might make as a director. (such as forgetting to
renew the insurance policy). The condo Corporation usually purchases Directors and
Officers Liability insurance for the directors.
day to day business of the Corporation. If you are elected as a director you may be held
responsible for the decisions you make as a director. Individual unit owners have a right to
seek compensation for any error you might make as a director. (such as forgetting to
renew the insurance policy). The condo Corporation usually purchases Directors and
Officers Liability insurance for the directors.
Broad Coverage - You my purchase "Broad Form" perils or "Comprehensive" perils coverage.
Comprehensive perils coverage it the better of the two.
Insure to Value - Condominium Insurance policies are designed to replace your belongings
as a result of loss or damage. Accordingly, you need to determine the cost of your personal
effects as if you had to go out and buy them tomorrow. Insurance companies will only pay up
to the amount of insurance you purchase. It is up to you to make sure you have sufficient
insurance. In the resource section on the right is and inventory workbook to assist you
with determining your proper limit of insurance.
Replacement Cost For Your Personal Property - In most instances "New for old"
coverage is available for your personal property. Most policies include Replacement Cost
protection. All you have to do is make sure that your amounts of insurance are sufficient
to replace your property at today's prices.
Sewer Backup Protection - One of the most unpleasant losses to your residence may
involve the backing up of water (among other things!) from your sewer main. Coverage
is available to protect you from the cost of repairing the damage and replacing your
personal property from Sewer Backup. Sewer backup can and does occur on upper floors
and is not just isolated to the lower level of the condo property.
Unit Owners Additional Protection - This is "just in case" coverage to assist in protecting you
in the event the insurance your Condominium Corporation has arranged on the structure is
inadequate.
Improvements and Betterment Insurance - It is quite likely the policy the Condominium
Corporation arranged on the structure does not cover any improvements or betterment's
made by unit owners after original construction has been completed. If you are not the
first owner of the unit you may be unaware of any improvements made by a previous owner.
Also, some Condominium corporations make the unit owner responsible to insure the
portion of the entire structure they occupy. It is important for you to either provide a copy of
the condo documents to your insurance adviser or clarify these issues with your lawyer
when you purchase your condo.
Loss Assessment Coverage - Provides protection from special assessments arising
from damage to the common property owned by the Condominium Corporation.
Protecting You From Legal Actions
All residential policies include coverage for Personal Liability protection. You may
unintentionally injury someone or their property as a result of your actions. Personal
Liability coverage will protect you if it is determined you were responsible. In
addition, even in the event of false accusations, the policy will provide for the cost
of legal expenses in raising your defense. Of course the policy contains limitations
and conditions as to the types of acts it will protect you for. For example, intentional
or criminal acts are not covered.
One of the Top Solutions for Condo
Insurance in the West
This is an excellent offering of coverage at a very competitive premium. Check it out below
and if you need any further information please contact us.
Condominium Unit Owner Comprehensive Coverage (Best level of coverage in the industry)
Comprehensive "All Risk Coverage with a $500 Deductible $50,000
Replacement Cost Coverage Included
Amount can be adjusted to whatever limit you require
Additional Living Expenses (50% of Contents limit) $25,000
This will cover hotel rooms and meals while you condo is being repaired.
It may also cover increased rent should you be required to rent another condo.
Legal Liability (Includes Voluntary Property Damage Medical Expenses) $1,000,000
Includes Extended Loss Assessment Liability Coverage
Can be increased.
Blanket Limit $500,000 in any one occurrence for one or all three (3) of the following:
- Unit Additional Protection
- Improvements and Betterments
- Loss Assessment Coverage
Deductible Assessment up to $25,000
eg; Often a condo corporation policy can have as high as a $25,000 deductible so if a loss happens to only
your unit you could have to pay the entire $25,000 deductible. This added coverage will provide protection
from paying more than your $500 deductible under your policy. This is sometimes and optional
coverage but is included in this package free of charge.
Excellent Special Limits and Riders are included as follows;
Please review this link about coverage for belongings.
Credit Cards 10,000
Fire Department Charges 5,000
Freezer Contents No Limit 2,000
Garden Tractors 15,000
Golf Carts No Limit
Headstones/Cemetery Property 5,000
Jewellery & Furs 6,000
Lock Replacement 1,000
Manuscripts, Stamps & Philatelic 3,000
Money/Bullion 1,000
Personal Property of Parent in a
Nursing Home 15,000
Personal Property of Student Away 20,000
Professional Equipment 5,000 2,500. (off Premises)
Securities & Memorabilia Collections
(sports cards / comic books) 6,000
Watercraft 5,000
Bicycles No Limit
Digital Media (CD’s, DVD’s, etc) No Limit
Glass Damage Included
Home Computer Software 10,000
Identity Fraud Expense Included-Maximum 15,000
Interior Damage from Roof Leak or Ice or Snow Melt
Liability for Swimming Pool Included
Mass Evacuation Included
Motorized Wheel Chairs Included
Power Scooters Included
Property Temporarily Removed No Limit
Property in Transit in Canada for 30 Days Included
Sewer Back-up Available
Silverware No Limit
Smoke Damage from a Fireplace Included
Premium $208
Base Coverage $50,000
If higher limits needed
Add $12 for each $5000 of additional Coverage
eg - Need 80,000 add 6x12=72 or $280 Total
Discounts
Age 50 plus 15%
Mortgage Free 5%
Claims Free 10%
Multi Line 5%
Total Discounts
Subtract total Percentage to Get Premiu
eg. 20% discounts = 208 less 20% = $166
Call for more details on rates for Edmonton & Calgary and towns without fire
departments and hydrants.
