“We thought the Condo Corporation insurance covered this?”
A comment that has been said many times before, when it’s TOO LATE!
Here are some helpful questions you can ask your insurance provider;
- Can the Corporation insurance deductible (in some cases $5,000 to $10,000 or higher) be charged back to the owner of the unit in the event of insurable loss?
- Does the Corporation insure the improvements and betterments of the unit or only insure to the original standard set out by the builder or developer?
- If the unit is rented, do they need to ensure that the tenant has proper insurance and also provide a copy to the Condominium Board?
- If the unit is rented, will they be covered for “loss of revenue insurance” in the event the tenant has to vacate the unit until the repairs are completed?
- If the buyer is purchasing a Bare Land condominium, has the Corporation insured the common area of the project including the buildings and improvements?
These questions can be answered by the Insurer with providing a copy of the Corporation Insurance policy binder and a copy of the registered Bylaws of the Condominium Corporation.
It’s wise for each owner to place their insurance with the same insurer as the Condominium Corporation, this will minimize overlapping coverage. However if the owner decides otherwise, it will be best to obtain a copy of insurance policy binder from the Corporation including a copy of the registered Bylaws and then they can have their coverage by their own insurer.
Thanks to Carol Malko at Condo First Review for this information. You may contact her anytime for further information on this or any other questions you may have regarding condominium document concerns. Or visit Condo First Review or call Carol direct at 780-920-5552.