Insurance can be a tricky and overwhelming thing. But it doesn't need to be. It really comes down to education and knowing what you're getting so you're prepared for those "just-in-case" moments. Unfortunately, a recent study by Allstate Insurance and Abacus found that education is lacking among condo-dwellers and it's costing owners dearly.
- 61% of Canadian condo owners don’t know or incorrectly assume their building’s insurance will cover damage to another unit from water or fire that originated in their unit.
- A staggering 74% of Canadians looking to purchase a condo in the next few years don’t know what their personal insurance cover versus what the condo corporation’s insurance should cover.
- A very low 39% of condo owners and 26% of condo buyers know that the belongings of a roommate or boarder are not covered under their personal condo insurance policies.
- Almost a quarter of condo owners are not aware that the condo corporation’s insurance is responsible for incidents like falling concrete and shattering glass from condominiums. This seems to be a common theme here in Toronto... (insert link to falling glass stories)
An inquisitive owner or buyer is always the most educated. There are certain questions that you should ask the condo board or management company so you won't be blind-sided. You don't need to go it alone. Your real estate agent can help get these questions answered quickly and accurately:
- What is covered and not covered under the condo's insurance policy? (Tip: get this spelled out clearly and in writing)
- When did the condo's premium go up last?
- What is the deductible for damages on commons areas?
- When was the last claim filed and did it affect tenants?
Want to receive the best real estate and neighbourhood insight right to your inbox?