F.A.Q

Because you could leave the tap on to your tub and flood everyone below you
Because the person living upstairs can leave their tap on and flood your unit
Because you (or someone else in your building) can fall asleep with a cigarette in your hand and catch the whole building on fire
Because a postal worker, or courier can trip on their way to deliver your package and sue you for a slip and fall.
Because any of the above can happen and the strata will charge everyone back on your floor for damages or to pay for the strata’s insurance deductible
Because you might get kicked out of your Condo while they are repairing it and insurance will pay for rent while your condo is getting fixed
Because you can wake up one morning and find there is water everyone in your unit because the laundry pipe connecting to your laundry machine in your unit burst because of a bad install.
Because over the years, you’ve collected a lot of things and you probably don’t think about it, but if you lost everything right now, it would probably cost you easily into the thousands just to replace your furniture, wardrobe and electronics.

My Condo Strata Deductible has Gone Up to Over $100,000 what do I do?

-Buy your own condo policy and make sure that your policy can cover a strata deducible over $100,000. There is a very limited number of companies that will insure strata deductibles over $100,000, to our knowledge only one or two. Most companies will only insure from $50,000-100,000 and that’s it. Contact us if you would like a quote.

Why Are Condo Strata Policies and Strata Deductibles Going Up?

-The short answer is too many claims and losses and because of this a few insurers have stopped insuring strata’s leaving the remaining insurers that do insure stratas to charge more and increase water damage deductibles to limit their risk.

Can I buy my own condo policy if my strata corporation cannot buy a strata policy?

-No. Part of the reason being that your personal condo policy relies on the underlying coverage from the strata policy. No strata policy means no underlying coverage.

What is the most common type of claim?

–In my experience, it’s been a some form of water loss, and then in second place a fire claim.

Does Condo insurance cover leaky condos?

–No. Unfortunately, mold, mildew and pollution is not covered by any condo insurance policy and it is hard to determine who’s fault it was and when the problem began.

What kind of discounts can I qualify for?

If you are ok with a soft credit check there may be a discount for that
If you’ve had no claims in the last 3-5 years, depending on the company there is a discount for that
If you’ve been with the same insurance company for the last 3-5 years some companies give a discount on that
If you have a burglar alarm in your unit, sprinklers or a fire alarm, there may be a discount for that.
If you are over 45 years old, there may be a discount for you
If you just moved out from your parents home and they had home insurance, you may qualify for a discount

How do I know what my strata policy covers?

-You can call your strata management company and ask them for a copy of your strata policy.

Why do I have to buy extra insurance if I run a business out of my Condo?

Because you need business insurance and regular home insurance companies are not in the business of insuring businesses. You may qualify for a home based business policy depending on what type of business you are running-which would be less than what you would pay for a real business insurance policy, however the coverages are different. If you don’t mention your home based business you could actually be voiding your policy because it is a material misstatement of fact. If you just using your Condo for incidental business use ie. You are a doctor, lawyer, realtor, accountant, financial planner etc. and you have a commercial office somewhere else with the proper commercial insurance, most insurance companies will write you insurance as long as you can provide evidence that you are covered for business insurance through your work. If you are running a business out of your Condo, please let me know and we can shop around to find you the best solution.

What if I plan to rent out my condo?

There are special packages for that type of situation, and again, if you can please let me know, then all you really have to insure is any appliances, furniture and liability. You may run into loss assessment problems, because you are not insuring enough stuff to properly cover a big loss assessment (remember, most companies only insure a loss assessment for 100-250% of the contents you are insuring in your Condo), however, give us a call and we may be able to find a solution for you.

I have a roommate, will they be covered under my policy?

Generally, unless they are family the answer is no. They will need their own insurance and some companies will not even write you insurance unless they know that your roommate is covered. The best reason I have ever received from an underwriter is that when stuff goes missing, it’s hard to fight fraud if one person has insurance and the other doesn’t. That’s why the insurance companies want both tenants to have insurance. Some companies will make an exception or allow the roommate to be listed as an additional insured however it is becoming rarer and rarer. Please mention any roommates when you ask for a quote.

Who covers the outside glass for my unit?

Generally the strata policy does. You should always refer to the wordings in your strata policy when it comes to anything that happens to the building.

Why does my insurance rates go up every year?

Because every insurance company sets its rates according to how many claims they have had and how much premium they collected last year. Also, you’ll see that most insurance companies automatically include an inflation rate into your insurance policy that bumps up the content amount by 5-15% depending on the company.

Are some companies better than others for claims?

Every company has their pro’s and con’s. You can always look in the exclusion section of your manual to see what you are not covered for. From personal experience, some companies do pride themselves more on their claims service than others. However, it also depends partially on who is assigned your claims adjuster and the restoration company that is sent to fix everything. The other factor that varies is how long you have been a client with the same insurance company. If you’ve been with the same company for a long time without a claim, they tend to be more accommodating than not. That’s sometimes why it’s better to stay with the same company over time even if they raise their rates a tiny bit more than some others.

Are the items in my storage locker covered?

That depends on your insurance company wordings. Please check your policy as every company has a different policy regarding items in storage.

I have a (pick any of the following) lot of photography equipment, a laptop, a musical instrument, engagement ring, jewelry, mountain bikes, tools etc.

Every insurance company has a different limit for certain items. As long as most items are not used as part of your profession, they are generally covered as hobby items under your general content limits-however you have to check with the insurance company and their wordings. If it is not covered, or you would like to make sure something is insured specifically ie. Engagement rings, your laptop when it is away from your home- you should schedule it on your policy.

What is loss assessment coverage?
If your Condo strata’s insurance policy does not have enough coverage to cover a loss, the unit owners will have to share the deficit in the strata’s insurance policy. Loss assessment coverage covers you for the strata insurance’s insufficient amount of insurance up to a limit.

What is contingent unit coverage?
If your strata’s insurance does not have enough coverage to fix your unit, your own Condo policy’s contingent unit coverage would protect you up to a limit.

The above information is subject to change. You should always check your strata policy and the wordings of your own Condo policy (or Condo wordings of the policy you are thinking about buying.) to see what you are covered for and what you are not covered for in terms of insurance coverage. Your insurance broker can give you general advice regarding your policy and point you to specific wordings in your policy, however for specific legal advice you should always be in contact with a legal professional.