Your policy and the corporation’s policy do different jobs
An Ontario condominium corporation must maintain property and liability insurance, but that policy does not replace an owner’s insurance. The corporation’s standard-unit definition, declaration and by-laws help determine what belongs to the corporation’s responsibility and what remains with the unit owner.
Review those documents before choosing limits. Two units that look similar can have different insurance needs because their improvements and governing documents differ.
What an owner’s policy may address
Depending on the policy, condo-owner coverage can include:
- Personal belongings in the unit, locker or other insured location
- Improvements and betterments beyond the corporation’s standard unit
- Personal liability if someone is injured or property is damaged
- Additional living expenses after a covered loss makes the unit unfit to occupy
- Loss assessments or a corporation deductible charged back to the owner, subject to the policy terms
- Damage to portions of the unit that fall outside the corporation’s insurance responsibility
Limits, deductibles and eligible causes of loss vary. A chargeback from the corporation is not automatically insured merely because the owner has a condo policy.
Review water damage and deductibles carefully
Water can travel between units and common elements, making the source of damage, responsibility and applicable deductible important. The Condominium Authority of Ontario advises owners to understand the corporation’s deductible and any by-law that expands when it can be charged to an owner.
Ask the corporation for its current insurance certificate, standard-unit definition and insurance-deductible by-laws. Share those documents with the broker, particularly when the corporation changes its coverage or deductible.
Tell the advisor how the unit is used
Confirm whether the unit is owner-occupied, rented to a tenant, used seasonally or left unoccupied for extended periods. Disclose renovations, a home business, short-term rental activity and higher-value belongings. Each can change the coverage or policy form required.
Tenants need their own protection for belongings and liability; see tenant insurance. Owners of a house should review home insurance.
Prepare for the policy comparison
Gather the current policy, unit details, mortgage information, claims history, corporation insurance certificate, standard-unit definition, relevant by-laws and a list of improvements and important belongings. Contact Westoak to review how the owner and corporation policies are intended to work together.