Condominiums

If you own a condominium unit, you can choose from a range of insurance policies that will enhance the protection of your condominium. Condominium unit owners experience some of the best aspects of homeownership and renting. As a condominium owner, you have title to your own "unit" as well as a share in common areas such as the lobby, swimming pool, parking garage, or garden. In fact, virtually the whole structure is "common" except, perhaps, for the interior paint, wallpaper and floor covering of your unit! You are a shareholder in the corporation from which you "rent" access to the common areas. However, you and your fellow owners can be held personally liable if things go wrong. A condominium insurance policy is a low-cost way to remove some of the financial worries of condominium ownership.

Personal Property coverage is as important for condominium owners as it is for all home owners and tenants.

Owner's Improvements coverage is an important consideration as most policies have standard limits which may not be high enough to cover upgraded broadloom, for example, or built-in cabinets or sound systems.

Unit Contingency Cover: apart from insuring any owner's improvements, you may also wish to insure your condominium unit itself so that you will be protected in the event that the corporation's insurance does not fully cover a loss to your unit. Your agent or broker can explain in more detail.

Loss Assessment coverage is an important feature of condominium insurance because you share responsibility with others for common property. The insurer will pay, up to a stipulated limit, your portion of any special assessment that is valid under your condominium corporation's governing rules:

• if it is due to a direct loss that affects a shared part of the premises (see first paragraph) and if it has been caused by an insured peril

• if it is due to legal liability arising out of shared ownership of common areas of the condominium premises (for example - to compensate a visitor for injuries incurred by tripping over a frayed carpet in a corridor)

• providing that the assessment has not been made necessary because of a deductible in the corporation's own insurance policy.
Normally, the condominium corporation's own insurance coverage will be adequate. Insurance-related special loss assessments seldom occur.

Please consult one of your brokers to assist you to determine the best solution for your individual needs.