News - Full Story From House to Condo - It’s more than a change of address Many people are becoming attracted to the benefits of condominium living.  The idea of freeing time from property maintenance so you can travel or spend time on leisure activities can be very appealing.  There are many issues to consider when making the move to a condo lifestyle, and when it comes to the issue of insurance Hallmark can help you understand what the property and liability risks are in comparison to those associated with your single-family home. What property needs insuring? Condo owners are responsible for insuring unit property and the condo corporation for common property.  You are responsible for coverage that applies to your unit’s alterations, appliances, fixtures and improvements, as well as your furnishings and personal possessions.  It is imperative to address everything with respect to your unit when you set up your policy.  This helps to ensure you remain properly covered in the event of limit adjustments in the future. You should consider replacement cost coverage for furnishings that are new or well preserved.  Keep sales receipts, appraisals and room photographs to help facilitate any future claims.  Your Hallmark broker will review your coverage with you annually to make certain you are protected for any new purchases. Moving from a house to a condo typically requires a reduction in personal possessions.  People usually keep small items that have exceptional value such as jewelry, special collections or silver pieces.  Make your broker aware of these items so you can discuss whether or not it is appropriate to list them on a separate Schedule.  This guarantees that you will be adequately covered and will avoid any additional distress in the event of a loss.  As with furnishings, you should keep sales receipts, appraisals and photographs to help support your coverage requirements. Loss assessment coverage is particularly important for condo owners.  If the corporation’s insurance coverage is exceeded due to a liability claim against the corporation or due to a loss of common structures that are covered by insurance, the corporation can levy a loss assessment against unit owners to cover the balance of the costs.  Loss assessment coverage protects you in the event of such levies.  For example, if your corporation has insufficient fire insurance on common area building(s) that are destroyed in a fire, you may face a special assessment to cover “your share” of the remaining cost associated with replacing the building(s). “Your share” is directly related to your percentage ownership in the corporation.  Most policies contain a loss assessment limit of $1000, however you should consider paying a slightly higher premium and increase it.  Your Hallmark broker can discuss limit options with you that will minimize your financial risk. If you are considering renting your condo (or a portion thereof), be aware that personal property coverage will be restricted.  Theft of property that is in the rented premises is not typically covered.  There are exceptions to this however, so it is important that you discuss your rental plans with your broker in order ensure that your property is covered.  Your personal liability It may be prudent to increase your personal liability limits when living within a condo community.  You have greater risk exposure to fire or property damage that may be deemed as due to negligence.  For example, an overflow from a bathtub or a leaking toilet fixture might cause substantial damage to a neighbour’s unit downstairs.  Increasing your personal liability limits will provide additional peace of mind and lower financial risk. Condo insurance is designed to work in conjunction with the coverage that a condominium corporation carries to protect the structures and risk that are common to all unit owners.  Ideally this should cover all aspects of your risk, however you should still carefully review the corporation’s bylaws to ensure that you understand what is considered unit property, and therefore your responsibility, versus common property so you can make an informed decision regarding coverage. Contact your Hallmark broker at 416-492-4070 or 1-800-492-4070 and we will be happy to assist you with insurance coverage appropriate for your new condo lifestyle.
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