A quick review with your insurance agent can ensure your strata’s insurance policy aligns with your individual unit’s insurance coverage.  This can safeguard you from a potentially overwhelming and unexpected financial expense you shouldn’t have to worry about.

Condominium or strata insurance covers the entire building including common areas such as hallways and elevators.  It covers damage to individual units as well if for example there’s a leak due to an issue with the building’s plumbing system.  In that case, though strata insurance should cover repairs to the suite, the suite’s owner is obligated to pay the strata’s deductible for the claim.

As such, condo unit owners’ individual insurance policies typically include coverage to pay the strata’s insurance deductible as well as protection for their unit’s contents if such an issue arises.

However, strata insurance deductible costs have risen dramatically over the last several years in Canada, and condo owners unaware of the changes may not be adequately covered.  Historically, deductibles in strata-managed buildings averaged $25,000. In the event of an accident such as a flood or fire, the owner would have needed to pay $25,000 to have their unit repaired.  Strata unit deductibles can now range to $100,000 or more; adequate coverage is crucial.

If you are a condo owner and you’d like to ensure your unit’s insurance policy includes enough coverage to cover the deductible of the strata’s insurance, review them both with your insurance agent.  The strata can provide you with a copy of its policy.  Individual policies’ terms may vary.  Please reach out if you need a referral to an experienced home insurance professional for an opinion on yours.

Adapted from DLC Marketing

Image: Bisakha Datta on Unsplash