26 2021

What’s Covered (And What’s Not Covered) By Your Condo Insurance

by admin

When you purchase a condo, in addition to the dwelling, you typically receive a slew of other benefits all lumped together onto your monthly condo fees. For some people, this might include amenities like pools, gym space, or an elevator, but for everyone, these fees include condo insurance.

Also known as the master policy, your condo insurance in Surrey covers the building and common areas from liability claims and your individual unit from some property damages. However, many condo owners fail to consider coverage for personal property and even upgrades done to the unit – many find out the hard way that they might not have the coverage they thought they had. 

What The Master Policy Covers 

Your master condo insurance in Surrey automatically provides you with: 

The condo association insurance policy protects the building and common areas. For example, if someone were to slip and fall on the tiled entryway of your building, the master policy would cover all medical and legal costs up to the limit stated in the policy. 

When it comes to accidental property damage, fire, or theft, the master policy will cover all common areas, and most will also typically provide coverage for individual units. However, there are some significant caveats to this coverage. 

While a master policy will usually cover the cost of repairs if, say, a water pipe bursts, damaging your walls and flooring, the policy may not cover any improvements you’ve made to the unit. For example, if you’ve replaced inexpensive laminate flooring with hardwood, you might not be covered for the upgraded materials. The same goes for designer paint, new kitchen cabinets, or other renovations. 

Also not covered by condo association insurance in Surrey are all the personal items in your home. If you take your home and shake it upside down, anything that falls is considered personal property and not covered by your master condo insurance. 

And finally, if you ever need to submit a claim through your master condo policy, you will usually be responsible for the deductible unless specific wording in your by-laws states otherwise. Unlike personal condo insurance in Surrey, the deductibles on a master plan can be significant. 

Why You Need Personal Condo Insurance in Surrey

Personal condo insurance is separate from your master condo policy and is highly recommended for anyone who owns or is thinking of purchasing a condo. Your personal condo insurance provides essential coverage for items not included in your condo association insurance. 

  • Liability coverage (inside your unit) 
  • Personal belongings
  • Betterment and improvements to your unit 
  • Expenses incurred after loss or damage 
  • Loss assessment 

Condo association insurance provides liability coverage for injuries that occur on common property – hallways, staircases, entryways – but it does not cover the medical or legal costs of injuries that occur in your unit. If you don’t have personal condo insurance, you are responsible for those costs. 

Your insurance also protects you from loss or damage to your personal belongings. This includes items you own that may not be physically present in the unit, like an expensive bike or kayak. 

You’ll also be covered for any improvements you make to the unit. Back to the burst pipe example, if your home has been damaged and your condo association insurance will not cover upgrades you have made, your personal condo insurance will. 

Personal insurance also protects you against special levies resulting from a building insurance claim exceeding the condo association coverage. In these cases, condo owners are responsible for the difference, but if you have personal condo insurance in Surrey, you may be able to avoid paying out of pocket. 

Don’t leave protecting your largest investment and your family’s financial security to chance. Talk to the professionals at Prime Insurance to learn more about your personal condo insurance coverage options.