Home insurance is pretty easy when you live in a single-family home. You need insurance for any disaster that could strike your home, for major repairs such as roofing that you may need to cover and you need to protect your home from things like theft. But what about when you live in a condo? What happens when the surrounding units cause damage to your home? Or when there's a governing board that also has their own insurance to protect against the building? What type of insurance and how much insurance do you then need for your own unit?
Surprisingly at least two-third of condo owners don't know how much their building insurance will cover should their unit be damaged from water or fire coming from another unit. And while the building will have some kind of insurance to cover such instances, it likely won't be enough if that's all the homeowner is relying on. And if they should ever need insurance, they will find out too late that they don't have enough. This is because the fire, flood or other damage will have already occurred. Most condo owners assume that their board insurance covers it all. It's only when something like a fire arises, for example, that it comes to light and then it's too late.
They may also not know just how susceptible their unit is to certain disasters, especially when it comes to fires. People often assume that just because their home comes with all the modern amenities, or because it has recently been updated for things like wiring and plumbing that all is well. But that's just not the case. In fact, newer homes that are equipped with modern technology -- including many things oil-based -- burn eight times faster than older homes.
"It does happen a lot, where condo owners believe their management company has taken care of it all in respect to checking renteres' insurance. They trust that it will be enforced but it can often go unchecked.
These findings are also backed by research done by Allstate. They found that 74% of Canadians currently wanting to buy a condo don't know their own personal insurance will cover or even what the insurance of the condo corporation will cover.