Buying a condo rather than house is often a smart decision. You get all the benefits of owning a property but don’t have the extensive maintenance costs of owning a yard, central heating system, and other things that come with a house. At the same time, there are aspects of owning a condo that are just as complicated as owning a house.
When it comes to condo insurance, first-time buyers can understandably be unsure exactly what their responsibilities are. We at MBS Insurance Brokers Ltd. in Edmonton are here to walk you through the process of insuring your condo so you’re covered in case of a loss. Exactly what counts as common property is slightly different for each condo corporation but there are some general guidelines we can let you know about.
What is typically covered by the condo corporation’s insurance?
The exact responsibilities of your condo board should be specified in the condo corporation’s by-laws (this is a legal requirement in Edmonton). Be sure to read and fully understand these rules before buying a condo. Typical responsibilities of the condo corporation include:
- The building’s structure (walls, floors, etc.)
- Pools or other recreational facilities open to everyone
- Parking lots
- Hallways and other common property
What is included in my own condo insurance?
Unless you’re buying a brand-new condo, you’ll probably be inheriting property that’s had work done on it already. It’s a good idea to inquire what possible improvements have been done to the condo and to thoroughly document your own possessions and roughly how much they’re worth. Such a list can be a great help in the event that a loss does occur and you have to make a claim. Things that are covered in condo owner’s insurance include:
- Content insurance to cover your personal belongings including fridge, stove, washer and dryer.
- Personal liability, in case your actions caused a loss (an example would be leaving a pot on the stove and catching the building on fire).
- Improvements and betterments to cover any improvements or betterments done to your unit since the original construction of the condo (an example would be upgraded countertops or flooring).