Condo Unit Owners Program

Condo insurance generally offers protections for your personal belongings, loss of use, and offers four coverages designed specifically for condominiums. It also provides personal liability coverage for bodily injury or property damage you unintentionally cause to others.

Collectively owned condominium property coverage
When damage occurs to a condo's common elements, you may be obligated to contribute toward the cost of repairs. This coverage reimburses you for your portion of those expenses (up to a specified limit).

The loss must stem from an event that would have been covered had it happened within your own unit.

Condominium unit coverage
This coverage takes effect when your condo corporation's insurance falls short of fully covering a loss affecting your unit.

Condominium unit owner improvements coverage
This coverage ensures that any upgrades you've made to your unit will be paid for should a loss occur.

Example
You replaced the standard carpeted floors with pricier hardwood. Later, a water pipe burst in the building hallway, flooding your unit.

Result
This coverage makes sure your hardwood floors are replaced. Although the corporation's insurance would only cover the cost of the carpet, this coverage ensures the additional costs are paid for.

Condominium deductible coverage
As with all policies, your condo corporation's insurance carries a deductible, in this case, for losses to the condo's common property. This coverage reimburses you when the condo corporation issues a special assessment and their bylaws permit you to be charged a share of the condo's deductible. The coverage applies to your unit and can be extended to common areas.

Go over your corporation's policy with your condo insurance broker to determine whether this limit suits your needs.

Coverages to Consider
Standard Condominium Unit Owner’s Package includes:

• Personal Property (Contents): Insures the contents of your unit, including appliances.
• Loss of Use/Additional Living Expenses: Reimburses out of pocket expenses in the event a covered loss forces you to make temporary living arrangements elsewhere.
• Contingent Coverage: Provides coverage for the unit owner in the event that the Condo Corporation has no insurance, or damage is below the deductible on the Condo Corporation’s policy. The claim must be for a peril insured under the unit owner’s policy for contingent coverage to apply.
• Unit Improvements: Insures any upgrades made to the unit by the Unit Owner or any prior owners of the unit. The Condo Corporation does not insure any improvements made to the unit.
• Deductible Assessed by the Condo Corp: Reimburses the Unit Owner for a deductible under the Condo Corporation’s policy. The unit owner can be charged the deductible if they were found to have contributed to the loss due to their actions or failure to act to prevent a claim. Coverage will be available only for perils that are covered on the Unit Owner’s policy (for example, sewer backup must be purchased for deductible coverage to apply on a sewer backup claim).
• Loss Assessment: Indemnifies the unit owner for their share of any special assessments levied against them by the Corporation which are made necessary by direct loss to the Common Condominium Property. This coverage applies only for assessments resulting from the same type of losses that would be covered under the Unit Owner’s policy.
• Personal Liability: Provides coverage in the event an Insured under the policy unintentionally or negligently causes physical injury or property damage to another person or their property.

Optional Coverages:

• Sewer Backup: Provides coverage for unit improvements and contents in the event
  of a sewer backup, which are excluded under the Condo Corporation’s policy. Deductible coverage only applies to sewer backup losses if this coverage is purchased.
• Service Line: Provides coverage for repairs in the event of a rupture or collapse of water or sewer lines on the Unit Owner’s side of the property line.
• Overland Flooding: Provides coverage in the event of a flood due to heavy rain or snow melt. Some Insurers may also provide coverage for overflow from lakes and rivers.
• Equipment Breakdown: Provides coverage in the event of a sudden and accidental breakdown of mechanical systems such as furnace, air conditioner and appliances.