3 problematic condo insurance claims
Across Canada, condo living is becoming increasingly attractive for young professionals and first-time home buyers who want to live near city centers, but have been priced out of buying detached or semi-detached homes. While they don’t come with a ton of space, condos typically come with other convenient perks like not having to worry about maintenance or having a gym in the building. When it comes to insurance, however, things can be a little tricky.
Condo owners are covered under two policies. One is provided by the condo association to cover major perils to all units (fire, lightning, water escape) and common areas as well as liability insurance for everything outside your unit. The other is personal condo insurance that an owner needs to protect their own liability, possessions, and their unit itself.
Because of the two-pronged approach to coverage, dealing with some situations is pain. Here are some of the tricky insurance claims you may have to deal with if you own a condo:
Flood damage from a neighbour’s unit
The only thing worse than accidentally flooding your house is someone else accidentally flooding your house. If your property sustains water damage because of a neighbour, the condo’s policy should cover the cost of returning it to the state it was in before. However, should any of your possessions be damaged or destroyed by the water, you will likely need to get in contact with the owner responsible for the damage and go through his or her personal condo insurance.
Problems on your balcony
While balconies make for an awesome place to take in the view and get some fresh air from the privacy of your unit, they can be a headache when it comes to keeping them properly maintained or repaired. With constant exposure to weather they suffer from wear and tear, and can become a trouble area for risk of water damage or damage to your possessions. You might guess your balcony is covered by your condo corporation because it’s part of the building’s structure, but that’s not always the case. If it’s not, you have to make sure you tell your insurance agent that you want to include it in your own policy.
Burst or backed up pipes
Water escape can be a nightmare in condos due to the chance of the problem affecting multiple
units instead of just one. To reduce this, good condos regularly check and maintain their plumbing so pipes don’t wear down and burst or leak.
Because plumbing falls under the responsibility of the association, your condo’s policy typically covers the cost of fixing burst or backed up pipes as well as any damage arising from the issue.
Know your coverage and kiss problematic claims goodbye
When buying your condo, it’s important you understand exactly what you’re getting in terms of coverage. Make sure you have everything the condo is supposed cover in writing and keep it some place safe to avoid confusion or wasted time if you need to make a claim for something. Also, be aware that deductibles are split between the whole condo community, so even if you’re unaffected by a major peril, you will still have to cough up a little bit of money for the repairs.
Condo living comes with many perks thanks to its co-operative approach to property management, but as a consequence, you’ll find dealing with damage to your home a little more complex than if you owned a detached home.