ECONOMICS
SIMPLE
How to find your way around condominium insurance
The private portion of each condominium unit must be insured by the person who occupies it, and must be covered by a different contract than that taken out by the syndicate of co-ownership, which covers the common portions, i.e. the structure of the building, walls, elevators, corridors, etc. The cost of insuring the common portions is covered by the monthly fees paid by each co-owner, which are used to manage and maintain the building.
Condo insurance for individual co-owners (private portion) covers:
- Contents( movable property)
- General civil liability for damage caused to third parties, whether bodily injury or property damage
- Leasehold improvements (paid for by the co-owner or carried out by the former co-owner)
The condo association's insurance covers:
- Common areas (elevator, roof, corridors, heating system, central air conditioning, balconies, etc.)
- Private areas (wall and interior structure)
- General civil liability of the syndicate (condominium administrators)
In the event of a claim, these 2 contracts can intervene.
On another note, it is essential for anyone wishing to acquire a condominium to check the declaration of condominium before buying a condominium to obtain all the details concerning the administration of the condominium as well as the monthly fees paid to the condominium syndicate. These fees must be used for the upkeep of the building and the premises (pool, lawn, snow removal, etc.)....) In addition, this document contains information on what is and isn't permitted in condominiums: whether or not pets are allowed, whether or not barbecue stoves are permitted, etc.
Condo insurance in Quebec
How much does condo insurance cost?
Various factors can influence the insurance premium for your unit, such as: proximity to fire hydrant, fire station, type of heating, type of construction, number of units, neighborhood where it is located, etc. With this information, your insurance company needs it to establish your cost of condo insurance, and it's important that you answer the questions accurately.
Type of condominium insurance coverage
Coverage is similar to that of a single-family home. The "Specified Risks" formula protects your contents against certain risks identified in the policy, such as fire, lightning, vandalism, theft, etc., and another part that covers your civil liability.
The second is an "All risks except certain exclusions" package that covers your contents as well as your civil liability. This second "All Risks Except" condo package will necessarily cost more, but you'll get far more protection than the specified-risk package. Liability coverage is normally standard at 1,000,000$, but for a few extra dollars you could increase it to 2,000,000$.
Store for condo insurance!
Talk to your broker or agent. property and casualty insurance certified, they'll be able to advise you.
How to choose the right condo insurance coverage?
Visit insurance premiums in Quebec are calculated according to a number of factors, including vehicle type, vehicle use, where you live, your driving history, and your age and gender.
