Sunday, 4 September 2011

Condo Insurance: Why You Need It

Congratulations! You’re looking at buying a condominium, but there are a few things you should about getting condo insurance in Canada. Condominiums are different from houses as the condo corporation’s insurance policy will usually cover the external elements of the building, including its property and structure. The majority of buyers then opt to get insurance solely on the contents of their condos.

What if you decided to do renovations within your unit, which are not done by the corporation? It’s spring time and as renovation season begins, you decide to spruce up you bathroom and kitchen. Owners can opt to include Improvements and Betterments Protection which would compensate you for any upgrades you’ve put into your condo, in addition to what the builder placed initially.

Supplemental condo insurance can also be extended to insure the unit itself, in case the condo corporation’s insurance does not fully cover a loss to your unit. If you take the responsibility to insure your condo unit, apart from basic contents insurance, you can better eliminate the potential risk of not being able to regain any loss due to the your condo corporation’s insufficient coverage, when your neighbours may not be as lucky.
When discussing insurance options with your broker, prepare a short list of questions before arriving. Finding a knowledgeable broker with experience dealing with the type of insurance you need can help you in the long run, so remember to take your time when finding the most appropriate broker for your needs. Buying a home is a great step in your life, so take comfort in knowing that you will be covered for those rainy days.

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