The interesting thing about condo unit owner’s insurance is that the strata are responsible for insuring the original building and the common areas. That means if something were to damage the building, your strata’s insurance policy would pay for it.
With that said, your condo insurance policy still provides 5 very important coverages:
- Personal Property – this protects the personal property of tenants such as their electronics, clothing, jewellery, furniture, etc.
- Additional Living Expenses – this provides extra funds to pay for alternate accommodations in case an insured peril damages the unit and the tenant needs to move out during repairs
- Unit Improvements – the strata insurance will only rebuild your unit up to its original specifications. If you’ve made improvements to your unit, this section will cover that additional value
- Loss Assessment – if the strata policy is inadequate to cover some loss or damage to common property, they may need to assess the unit owners for the excess. This section will help you pay for the assessed amounts
- Unit Additional Protection – if the loss is restricted to just your unit and the strata policy is inadequate, the law prohibits the strata from assessing the unit owners. This section will help you pay for any shortfalls