The strata council of your condo corporation provides protection for the strata building by purchasing insurance. The amount of insurance purchased is based on the building's original construction specifications. Upgrades that you, or previous owners of your condo have made to your unit are not covered by the policy held by the condo corporation, typically things like hardwood floors or granite countertops.
You are solely responsible for covering the insurance costs of modifications that have been done to your unit. If you add building improvements protection to your condo owner insurance policy, you can be covered completely. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. Strata insurance would only pay to replace your unit's original carpet or flooring, which means that your hardwood floors would not be covered by it.
Modifications such as baseboards, crown mouldings, wallpaper, faucets and lights, and closet organizers are also not protected, so you should consider adding additional coverage for these things. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Items such as window coverings and permanently installed lighting would be included as fixtures. And by way of bylaws, you may be responsible for any glass that forms part of your unit. Coverage is available for both fixtures and glass.
Some condo owners do not fully understand what is included in their condo property deductible assessments. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Protection against damage from things like water, fire, and earthquakes are generally included in these policies. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
As a unit owner, if the building suffers a loss, the condo corporation may assess each unit owner a portion of the deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. Your part of the condo corporation's deductible will not be covered even if you purchased condo deductible assessment insurance, if the damage is caused by earthquake, and you did not add earthquake insurance in your condo insurance policy.
In order to have full peace of mind over your home and property, it's wise to get the most extensive protection that you can. If you as the homeowner caused the damage to the unit yourself, the complete deductible could be your responsibility. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
The value of your building will be one of the factors in the cost of the deductible for the condo corporation, typically somewhere between $2,500 and $25,000. In some cases, the condo corporation's deductible could be even higher. Check your strata's annual general meeting minutes or contact your strata council to find out what your deductible is. Depending on what kind of loss was incurred, the deductible could range in cost. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Condo property deductible assessment protection should be purchased by every condo owner, and take the time needed to decide on the proper amount of coverage.
You are solely responsible for covering the insurance costs of modifications that have been done to your unit. If you add building improvements protection to your condo owner insurance policy, you can be covered completely. If damages occur to your unit and you have not added building improvements protection to your policy, then your unit will only be restored to the original building specifications. Strata insurance would only pay to replace your unit's original carpet or flooring, which means that your hardwood floors would not be covered by it.
Modifications such as baseboards, crown mouldings, wallpaper, faucets and lights, and closet organizers are also not protected, so you should consider adding additional coverage for these things. Your condo corporation's policy likely doesn't insure any fixtures in your unit. Items such as window coverings and permanently installed lighting would be included as fixtures. And by way of bylaws, you may be responsible for any glass that forms part of your unit. Coverage is available for both fixtures and glass.
Some condo owners do not fully understand what is included in their condo property deductible assessments. We talked earlier about insurance policies that condo corporations purchase for the strata buildings. Protection against damage from things like water, fire, and earthquakes are generally included in these policies. The strata will have a deductible on the building's policy, as is normal with any type of insurance.
As a unit owner, if the building suffers a loss, the condo corporation may assess each unit owner a portion of the deductible. There are also times where one unit owner may be ordered by the strata council to pay the full deductible, and if this is the case and you do not have condo deductible assessments protection, you will have to pay the deductibles yourself. Your part of the condo corporation's deductible will not be covered even if you purchased condo deductible assessment insurance, if the damage is caused by earthquake, and you did not add earthquake insurance in your condo insurance policy.
In order to have full peace of mind over your home and property, it's wise to get the most extensive protection that you can. If you as the homeowner caused the damage to the unit yourself, the complete deductible could be your responsibility. To illustrate this, let's imagine that damage was caused by a burst pipe behind the wall of your unit. While there was likely nothing you could have done to prevent it, your strata may determine that you are responsible as the damage came from your unit.
The value of your building will be one of the factors in the cost of the deductible for the condo corporation, typically somewhere between $2,500 and $25,000. In some cases, the condo corporation's deductible could be even higher. Check your strata's annual general meeting minutes or contact your strata council to find out what your deductible is. Depending on what kind of loss was incurred, the deductible could range in cost. Typically, the deductibles for water and earthquake losses are higher than that for fire losses. Condo property deductible assessment protection should be purchased by every condo owner, and take the time needed to decide on the proper amount of coverage.
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