Condominium Insurance: What's Ours is Mine?

One of the benefits of condo living is the sharing of spaces and services, keeping your home maintenance requirements to a minimum. At the same time, these shared areas have their down side since they can end up costing you more in insurance coverage.

Your own condo insurance policy covers the inside of your unit (flooring, walls, contents), while your condo association has insurance to cover common areas in the complex that include:

• Halls
• Foyers
• Recreational rooms
• Pools/exercise area
• Parking lots
• Storage spaces
• Roof
• Building exterior

As a condo owner, it is imperative that you become familiar with the condo association’s master policy - exactly what is covered and what is not. For example, whose policy covers the fixtures inside your unit (lighting,  built-in cabinets and shelves, heating/cooling vents, etc.)? What if your unit suffers water damage: who is liable? What if the leak started in another condo unit? If you store valuables in the condo’s shared storage area, who is liable for any damage done to them there?

Ask a member of your condo association for a copy (often called the “master deed”) of the building insurance policy; don’t be shy, it’s your right as a paying member of your condo community. Don’t assume at which point on the shared condo walls the association’s legal and financial responsibilities end and yours begins!

Basic liability and contents coverage are as important for condo owners as they are for all homeowners and tenants. Make sure you have additional insurance for expensive personal items like jewellery and furs.

Your condo insurance policy may have to cover your liability exposure for personal injury or property damage done in the shared or common areas of the building, such as during social gatherings in your condo community.  

The condo unit owner’s comprehensive policy would cover the cost of any home renovations or improvements you have made. Find out if your association provides comprehensive or blanket coverage to protect you against other condo owners who may not have adequate coverage.

There is much to enjoy about condominium living and, with the help of your insurance broker, much peace of mind to be gained in protection of your home and belongings.