Condo buyers, take a look at those terms and conditions again because your unit may not be as fully insured as you think. A significant number of condo owners could face massive liability costs by simply not checking their building insurance policy.
Almost two-thirds of condo owners do not know or incorrectly assume their building’s insurance will cover damage to another unit from water or fire that originated in their unit, according to research from Allstate Insurance. If found personally liable, owners could potentially face huge financial loses. For example water damage deductible could amount to $100,000, but most buildings downton Vancouver average $10,000 - $25,000 deductible so make sure your personal condo insurance covers you for this.
“It’s just an assumption by most condo owners that their strata insurance covers it all. It’s only when something arises, like a fire or water leak from mulfinctioning appliance, that it comes to light and then it might be too late,” Vancouver REALTOR Sanjin Cvetkovic from CENTURY 21 In Town Realty.
Modern homes equipped with modern technology and oil-based products burn eight times faster than older properties, according to Fire and Rescue. Last weekend, over $20 million worth of damage was done following a fire in a condo construction building in South Edmonton.
Investors are also being warned to ensure their respective property management companies are forcing their tenants to have renters’ insurance upon lease renewal. “It does happen a lot, where condo owners believe their management company has taken care of it all in respect to checking renters’ insurance. They trust that it will be enforced, but it can often go unchecked.”
The Allstate research also found that a staggering 74 per cent of Canadians looking to purchase a condo in the next few years do not know what their personal insurance should cover versus what the condo corporation’s would cover. That's why it is imperative to talk to your REALTOR and get proper information and ask for buildings Insurance Policy wich outlines these costs and deductibles. Sanjin Cvetkovic and Century 21 In Town REALTORS make sure you are guided every step of the way.