Many first-time Edmonton condominium owners are unsure about whether they need condominium insurance for their new home. They may believe that the condominium corporation carries insurance which is covered under their condominium fees. Although you may be paying expensive monthly fees to the condominium corporation, the insurance they carry typically does not cover what is actually inside your unit. Should a catastrophe such as fire occur, you may be on the hook to replace everything from flooring to cabinets to counter tops.
The following section will help guide you to learn important facts when searching for the best condominium owner’s insurance package for you.
Introduction to Edmonton Condominium Insurance
In Edmonton, most condominium corporation policies will only cover items that are part of the building – for example the common areas, parking lots, elevators, etc. While it is nice to be able to share in these amenities, as an owner, you also assume certain responsibilities and liabilities when things go wrong.
Also, most condominium corporation policies will not provide coverage for your personal contents, personal liability, or any upgrades you have done to your unit. So if a burglar breaks in and steals your belongings, a visitor slips in your unit and sues you, or a fire damages upgraded hardwood flooring and granite countertops that you installed, you could be out of luck without a condominium insurance package to protect you.
What kind of coverages do I need?
The first question one should ask is, “What do I actually need to cover?”. A good place to start is a review of your agreement with your condominium association. Some condominium corporations have a Walls-in (also referred to as an All-In policy) that covers everything within the interior of the unit, including the interior surfaces of walls, floors and ceilings of every single individual unit.
A Bare Walls-In policy covers real property, from the framing inward, but will not cover any fixtures or installations (such as your floors, cabinets, or countertops).
Finally, on the other end of the spectrum are Bareland policies, where essentially nothing of the structure is covered whatsoever. In this case, the owner should be purchasing a homeowner’s policy (or equivalent coverage) with full coverage for the building itself in case of a loss.
Basics of a condo policy
A condominium owner’s insurance policy can provide protection for many risks, such as: