You Could Lose if Your Condo Corporation Skimps on Coverage
Some condo corporations will lower costs by limiting the coverage to the building. This means that in the event of a claim, you, as one of the unit owners can be on the hook when damages are more than the corporations policy limit.
The condo corporation is responsible for insuring the exterior of your condo building as well as all the communal spaces. How can you protect yourself if you don’t get to choose the coverage level for a space that, as a part owner of the building, you’re liable for?
Loss Assessment, and Loss Assessment Liability Coverage – will cover costs that exceed the condo corporation policy’s coverage.
If for example, there was a significant fire within the building which resulted in massive damage to the structure and units, the cost to repair may exceed the condo corporation’s insurance policy’s building limit. In that case, each of the condo owners would be required to pay a percentage of the outstanding repair costs.
A loss assessment policy would allow you to claim the total you were required to pay, keeping you protected from low limits on the condo corporation policy you otherwise wouldn’t have control over.
To explore your Loss Assessment, and Loss Assessment Liability options give us a call at 1 (888) 298 7343.