Condo Insurance

The issue of insurance is often overlooked by those buying strata homes, especially by first-time buyers who may not have had insurance on their contents in a rental dwelling (many renters choose not to buy this coverage). When they buy a strata dwelling, these buyers may be under the false impression that the strata’s insurance coverage is sufficient. This simply is not the case.The strata’s insurance coverage looks after the structure itself, it does not provide any coverage at all for the contents of the home, the replacement value of which can quickly escalate for even very modest residences. The other important element not covered by the strata insurance is personal liability. This becomes a significant issue when it comes to the matter of water damage and claims.

Strata corporations are feeling the weight of higher premiums and deductibles on their insurance. In some cases, the deductibles may be even higher for water damage and related claims. This has made strata councils very sensitive to flood and water damage matters. Individual owners within the strata need to be aware that, if their suite can be proven to have caused damage to the building (i.e. overflowing tub, malfunctioning dishwasher, etc.) they can be sued by the strata council for the damage caused. An insurance policy for the contents of your strata home includes protection for personal liability. Those without such a policy will face this legal action on their own.

Insurance professionals tell us that, in some buildings, up to 50% of the owners may not carry any personal insurance. This is a shocking figure, as a fire, break-in or lawsuit would certainly wipe out many of these people financially.

Dennis Prouse
Insurance Bureau of Canada
Nov 1, 2004