As a condo owner or perhaps a potential buyer, there are two very simple things to understand about insurance. (Of course, there are a lot more than two things involved in this topic, but only two are critical if you’re worried about the topic being a good cure for your insomnia…these are the two important ones, so stop for coffee and stay with me in this.)

number one: The Condominium Corporation is required by provincial legislation to have general liability insurance, Directors and Officers, Errors and Omissions and machinery and equipment and the Corporation’s bylaws may stipulate other coverage with respect to the Corporation’s operations. These documents ensure that, as the owner, your interest in the entire condominium is protected. (This is also the insurance your mortgage company will want to know about.)

If the fire damages or destroys the building or a block of townhouse units, the Condominium’s insurance policy will cover the costs of repair or replacement and the owners will not be required to pay the costs of reconstruction.

Your monthly rates include your share of this cost for the property as a whole.

Number two: The condo insurance won’t pay for your Uncle Bob’s lost wages when he trips on the ottoman in his study and breaks his leg. Neither will he replace your puffy white cloud couch when your red wine juggling routine goes awry.

These types of claims: personal liability and personal property damage (only) must be addressed through your own personal insurance policy. Specific coverage for condo owners is available from most insurers and is generally less expensive than standard homeowners insurance, since your insurer is not responsible for covering the cost of replacing the structure itself, but only the content and (depending on your Corporation’s bylaws) any improvements you make to the interior of the structure. Your broker can help you find the most appropriate coverage for your needs. (Tip: If you don’t currently have a broker or want a competitive quote, you can check with your condo broker for a quote; some will offer homeowner discounts on a property they cover.)

What you need to keep in mind is that there are two types of insurance and that is entirely your responsibility.

Remember the poor souls you’ve seen on the news whose condos were damaged or destroyed by fire: their unit will be repaired or rebuilt, but their personal belongings won’t be replaced if they didn’t have their own contents policy. One final note in this regard, and this one should keep you from oversleeping, is to make sure your personal policy pays for any deductibles you may be responsible for. This situation can happen to anyone and has certainly happened in the past: you forget to close your bedroom window before you leave for Christmas, your pipes freeze, burst and flood your neighbor’s units. Although the Corporation’s insurance will respond to the claim, you may be responsible for the amount of the deductible. With this coverage on your personal policy, you won’t have to pay out of pocket for this mishap (unless the Condo’s insurance premiums increase next year as a result of claims history, in which case, all owner fees may increase). to cover the additional cost).

Of course, this is a much more complex topic than can be represented here before we have you looking for a pillow and blanket, so if you’re interested in more detailed information, talk to your broker and/or the broker. of your condo. about more details.