When it comes to buying a condo, there are certain insurance coverages soon-to-be owners need to understand. It’s also important to know the difference between insurance for the condo association versus insurance for the condo owner.
Understanding what’s covered
A condo association insures the building and common areas. It does not insure possessions in each unit or provide coverage if a condo owner damages another unit or if someone becomes injured in a unit and files a lawsuit against the owner. This is where condo insurance comes in – it can help condo owners handle the expenses from unexpected events (such as legal fees) if they occurred.
Insurance coverages to consider
Here are some insurance coverages which could help condo owners. Our team can explain additional coverages and also, find other coverages which suit the needs of the condo owner.
Unit additional protection
This coverage insures a condo owner’s individual unit against an insured peril (i.e. a fire). In the event the condo association’s insurance cannot provide sufficient coverage, unit additional coverage may be able to help cover costs.
Loss assessment coverage
Condo owners share common property, such as roofing. If there is a loss to shared property by an insured peril, loss assessment coverage could help if the condo association’s insurance is insufficient.
Additional living expenses
If a condo owner’s unit become inhabitable and they needed to relocate, additional living expenses could help cover living expenses, such as staying in a hotel.
If someone was injured at a condo owner’s unit, the owner could be responsible for injuries. Personal liability insurance could help cover legal expenses if this occurred.
The best way to understand condo insurance is to contact a member of our team. Our brokers understand how condo insurance works and the coverages which will best suit condo owners.
101 – 1281 91st Street Southwest
Edmonton, AB T6X 1H1
Office: (780) 479-0005