How Condo Insurance Protects You
A condo insurance policy can provide protection in the following circumstances:
Fire & Smoke Damage
If your belongings are damaged by smoke or fire, this coverage will help you recover the costs for replacing them.
Crime and Vandalism
This coverage helps you recover the costs of your belongings—electronics, jewelry, clothing, etc.— if they are stolen from your home.
Personal liability protection provides coverage for yourself and any people who live in or visit your condo if is someone is hurt while visiting. For example, if you are hosting guests and someone breaks their arm due to tripping over your entryway rug, your liability coverage can step in to cover medical costs and other expenses.
If a pipe bursts under your sink or your washing machine starts to leak, you could be left with severe water damage in your unit. This coverage will help protect you by reimbursing you for any costs associated with repairs.
If you have made any improvements to your condo (new countertops, upgraded flooring, etc.), it is important to protect your investment. Building improvement coverage ensures that your hard work is covered should anything damage your unit.
If you accidentally cause damage to multiple units, you could be solely responsible for the deductible if your strata corporation files a claim. For example, your toilet may overflow and cause water damage to your unit and the unit beneath you. Some buildings have deductibles up to $100,000, so it is crucial to ensure that you are protected in this situation.
Additional Living Expenses
Condo insurance policies offer coverage if your home becomes uninhabitable due to fire damage, water damage, or another form of damage. This ensures that you do not fall into debt due to unexpected hotel costs or other living expenses while your condo is being repaired.
Additional Strata Coverage
If your strata’s insurance policy is not enough to cover the repair or replacement costs incurred due to water damage, fire damage, or another cause, every condo owner in the building will need to come up with the funds to cover the shortfall. This type of coverage ensures that you are not left with a large and unexpected expense if your strata does not have sufficient coverage.