The strata council of your condo corporation provides protection for the strata building by purchasing insurance. Specifications on the original construction of the building are used to calculate the amount of insurance needed. That means any upgrades you (or any previous owner) may have made to your unit, like installing hardwood floors and/or granite countertops, are not covered by the condo corporation's policy.
You are solely responsible for covering the insurance costs of modifications that have been done to your unit. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
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. Permanently installed lighting and window coverings are examples of fixtures that are not generally covered. And by way of bylaws, you may be responsible for any glass that forms part of your unit. Coverage is available for both fixtures and glass.
Condo property deductible assessments are something many condo owners have heard about, but many do not know exactly what this entails. Strata buildings are covered by most condo corporation's insurance policy, as we have stated. These policies protect against damage from fire, water, earthquake, etc. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. 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.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. If you as the homeowner caused the damage to the unit yourself, the complete deductible could be your responsibility. We will look at the case of a burst pipe that is located behind one of your unit's walls. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. There are examples of this deductible being even more than $25,000. 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. Depending on what kind of loss was incurred, the deductible could range in cost. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Condo property deductible assessment protection should be purchased by every condo owner, and take the time needed to decide on the proper amount of coverage.
You are solely responsible for covering the insurance costs of modifications that have been done to your unit. Fortunately, you can do this easily by adding building improvements protection to your condo owner insurance policy. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. For example, if your hardwood floors were damaged by a burst pipe, your strata corporation's insurance would simply install the original flooring, which was likely carpet.
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. Permanently installed lighting and window coverings are examples of fixtures that are not generally covered. And by way of bylaws, you may be responsible for any glass that forms part of your unit. Coverage is available for both fixtures and glass.
Condo property deductible assessments are something many condo owners have heard about, but many do not know exactly what this entails. Strata buildings are covered by most condo corporation's insurance policy, as we have stated. These policies protect against damage from fire, water, earthquake, etc. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
When a building takes heavy damages, each unit's owner will likely have to pay a part of the strata's insurance deductible. Having condo deductible assessments protection can be highly beneficial if there is a case where your strata assesses the deductible to you as a single unit owner. 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.
Having complete protection is always the wisest option for any homeowner who wants to protect their property to the fullest extent. If you as the homeowner caused the damage to the unit yourself, the complete deductible could be your responsibility. We will look at the case of a burst pipe that is located behind one of your unit's walls. Even though this would not be the fault of the owner at all, the damage came from your unit, and it's possible that your strata council could conclude that you are responsible.
Condo corporation deductibles could be anywhere from $2,500 to $25,000, depending on the building you live in. There are examples of this deductible being even more than $25,000. 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. Depending on what kind of loss was incurred, the deductible could range in cost. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Condo property deductible assessment protection should be purchased by every condo owner, and take the time needed to decide on the proper amount of coverage.
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