Condo Owner’s Protection from Square One

The problem with traditional insurance providers

Condo insurance policies usually start with coverage for personal belongings, personal liability, and additional living expenses that are incurred as a result of a covered claim. From there, most insurance companies split their additional condo coverage into two categories, each referring to a different set of needs:

• Condominium additional protection provides coverage if your condo corporation decides to assess a portion of their deductible against your unit, or for shortfalls in the condo corporation’s master policy. It also helps with damage to the building, or common areas within parts of the building that you are responsible for.
• Condominium improvements protects additional upgrades made by you or a previous owner. In the event of an insured loss, the condo corporation will only repair the unit to its original condition. This coverage protects the changes made since the original construction, and often relates to things like new countertops and renovated kitchens/ bathrooms. It also covers floors, glass and other fixtures that the law dictates you are responsible for insuring.

Great, but how do I decide what needs to be covered, and under which section to buy that coverage?

An easier option with Square One

At Square One, we like to keep things simple.

Our standard condo insurance policy provides a foundation of coverage for your personal property, as well as additional living expenses in the event of a claim, and your personal & premises liability. It’s designed to cover you if your stuff is lost or damaged, if you accidentally injure someone or damage their property, or if someone is injured in your condo. Then, our optional Condo Owner’s Protection adds all-in-one coverage for improvements made to your home and additional protections pertaining to your condo corporation. (See: What’s included with Condo Owner’s Protection for details.)

Whether or not you choose to include Condo Owner’s Protection, you have the option of adding a variety of additional coverages. These either cover things you own (bicycles, jewellery, etc.) or offer protection against specific situations that might result in your financial loss (identity theft, legal protection, etc.). For a full breakdown of available condo coverages, visit us at Square One Insurance for a free online quote.

Now that we’ve covered the basics, let’s take a look at Condo Owner’s Protection in a little more detail.

What’s included with Condo Owner’s Protection?

Coverage for Upgrades

Countertops, bathrooms, kitchens and floors; all areas of the home that need occasional updates. If you live in an older building, upgrades may even have been done before you purchased the unit. In the event of a loss, you may find that the condo corporation is only willing to replace your marble countertops with the Formica laminate of the original build. Through no fault of your own, your home just lost value. Upgrade to Condo Owner’s Protection and that’s one less thing to worry about.

Additional Condo Owner Protections

Condo Owner’s Protection also protects against any shortfalls in your strata’s own insurance which they decide to levy against you, and amounts assessed against your unit for repairs to common areas of the building. Finally, if your strata is forced to make a claim with their insurer, Condo Owner’s Protection protects you in the event that they decide to spread the cost of their deductible amongst the condo owners.

Commonly asked questions

Why do I need condo insurance?

Condo insurance isn’t compulsory, and your condo corporation already covers the building for certain situations. However, they don’t cover your personal property – at all – or the extra costs that you might incur if you were forced out of your unit while necessary repairs are made following a loss. Aside from the obvious benefits of peace of mind from the risks outlined above, buying condo insurance offers great value for your money. Many consumers aren’t aware that condo insurance often costs only slightly more than a tenant’s insurance policy, while providing similar coverage as a home insurance policy. Considering the broad range of risks (and the huge resulting expenses) that you take on when you buy a condo, condo insurance is a steal! With multiple parties like the condo corporation and many different unit owners or renters, there are a lot of things that can go wrong without it being your fault. For this reason alone, condo insurance can give you peace of mind.

What happens if there is a dispute with the condo corporation over a burst pipe?

Your unit is damaged by water from another condo, but the owner refuses to admit responsibility. What do you do? With Condo Owner’s Protection, you have up to $1,500 in coverage for the cost of investigating the situation and determining whether your policy needs to respond, or whether it is the responsibility of someone else.

What about earthquake deductibles?

With Square One, you choose whether to buy earthquake insurance and you set your own earthquake deductibles for damage to your belongings, as well as improvements and fixures in your unit for which you are responsible. The strata or condo corporation may have a much higher earthquake deductible for damage to the entire building. In the event of a loss, this deductible might be divided amongst the unit owners. You will need to purchase coverage for this possibility under our Condo Owner’s Protection.

How about the stuff in my storage locker? Is that protected?

If you buy your condo insurance with Square One, it is. We treat items in your storage unit as we would if they were in your condo. However, other insurance providers may not do the same, so be sure to check with your insurer.

What constitutes negligence as a condo unit owner?

Negligence determines who is responsible for loss or damage suffered by others, but what determines negligence? To avoid being considered negligent, the courts want to see that reasonable action has been taken to prevent a loss. What constitutes reasonable action depends on the situation. For example, someone who carelessly tosses a cigarette from their balcony might be considered negligent (and therefore liable) if the resulting fire causes damage to the building, or to property belonging to others. For example: the person who carelessly tossed that cigarette may be personally liable for damage to the patio furniture on the balcony below, as well as structural damage to the building.

Want to learn more? Visit our Condo Owner resource centre for more helpful articles about the intricacies of condo life. Or, get an online quote in under 5 minutes and find out how affordable personalized home insurance can be.