Owning a condo involves several of the same threats as homeowners, such as fires, water cracks, and theft. Hence, condo living presents extraordinary threats and duties that require tailored coverage via condo insurance.
This article explores what condo insurance covers and does not cover in Canada. While it provides a general overview of typical coverage, policy specifics, protection alternatives, and conditions can differ significantly. Therefore, it is highly recommended that you check your insurance documents or contact your insurance provider or broker directly.
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Appliances
Condo insurance automatically protects your appliances, such as refrigerators, dishwashers, stoves, and washing machines. If these devices are harmed or destroyed by a protected danger, like fire, you can often file a claim to be paid for repair or replacement expenses. Hence, insurance commonly does not cover wear and tear, failure, or mechanical breakdowns.
Harm To Other Apartments
Yes, suppose you involuntarily trigger harm to other apartments in your condo construction or complex. In that case, the liability protection attached to your condo insurance policy may assist in protecting the harm to the impacted apartments. For instance, if a water pipe is damaged in your kitchen and water leaks into the unit below, destroying the ceiling, your liability protection could assist in reimbursement for the repairs.
Provided the disposition of condo living and the prospect of a straightforward accident triggering significant harm to other apartments, having enough liability protection is essential. In a small condo construction, $1 million in liability protection might be enough. Hence, raise your protection cap to $2 million in more enormous constructions where harm can quickly exceed that sum.
Fire
Yes, condo insurance automatically covers fire and smoke damage unless you purposely trigger it. If it looks accidental, condo insurance can help cover the expenses to replace your damaged or harmed property and additional living costs if your condo apartment is deemed uninhabitable, up to a specific sum mentioned in your policy.
Jewellery And Engagement Rings
Engagement rings and jewelry are automatically protected by condo insurance because they are considered private possessions. Hence, high-worth products usually come with protection caps; if you desire to protect the entire worth of the product, you might require a floater.
HVAC
If your apartment possesses its HVAC structure for your particular apartment, then condo insurance will often protect it against dangers like fire. Suppose the HVAC system is an aspect of the construction’s general components maintained by your condo relation. In that case, the condo construction’s master insurance policy attached to your charges will likely protect it.
Mold
Condo insurance may protect against mold damage, but only if it results from protected damage, like a burst pipe. Otherwise, insurers will commonly not cover it if the cause is failure, maintenance problems, or routine use.
Plumbing
Condo insurance automatically protects plumbing problems within your apartment if the harm results from a protected danger, like a burst pipe because of the freezing, and you possess the proper protection attached to your policy. Hence, problems with shared plumbing systems or plumbing issues in general regions are often handled by the condo association and protected under the master condo insurance policy.
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Roofs
In several condo constructions and communities, roofs are regarded as a general component, implying they fall under the maintenance of the condo association and the coverage of the condo’s master insurance policy. Hence, if damage to the roof occurs that is not triggered by a protected peril, the condo association may provide a unique evaluation to cover the repair expenses, which would be your duty to reimburse.
Storage Units
Condo insurance can protect the contents of your storage unit against dangers such as fire and theft. Since some guidelines restrict the sum of protection for products saved outside your primary living space, you must check your policy information often or reach out to your insurer to verify the depth of the policy’s protection and likely contemplate additional security if required.
Structural Problems
In several condo constructions and communities, structural problems like harm to the building’s basis, exterior walls, or roof are considered general components. Due to this, they are automatically the duty of the condo association and are protected under the condo’s master insurance policy. Hence, if a protected danger does not trigger structural problems, the condo association may provide a special evaluation to protect the repair expenses, which would be your duty to reimburse.
Theft
Condo insurance automatically protects against break-ins, burglaries, and theft. While it is no replacement for valuable family heirlooms or keepsakes, it can usually assist in paying you for your stolen asset, even if the robbery happens while you are temporarily away from home, like on vacation.
What Condo Insurance Does Not Cover In Canada
Earthquakes
No, Canada’s standard condo insurance guidelines do not automatically include earthquake protection and, hence, do not protect against leading harm. Several insurers contemplate alternative protection, which implies you must choose and include it in your policy to be covered against earthquake-associated losses. Suppose you reside in one of Canada’s earthquake regions, which provides for Eastern Northern Ontario, the Southern Great Lakes, Western Quebec, and the Kamouraska region. In that case, this is something you might contemplate doing.
Flood Damage
Standard condo insurance guidelines in Canada automatically do not protect against flood harm. To be covered in heavy rain pou, flash flooding, river overflow, and spring run-off, it is highly suggested that you include overland water protection in your policy. Similarly, you would require sewer support protection against flooding triggered by sewer support, another one you must opt into.
Special Evaluation
Condo insurance often does not protect special evaluations. These one-time charges are billed by your condo association when they experience high unanticipated costs when a budgeted cost surpasses its estimate or to protect litigation expenses. For instance, if your condo association requires you to fix the old and destroyed roof of your building and provides a unique evaluation to protect the costs, it would be your duty to reimburse this fee.
