How does Calgary condo insurance work?
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Condo insurance in Calgary is an increasingly popular form of protection for property owners. The number of condominium builds only continues to increase as the urban lifestyle becomes more popular. It’s estimated that Calgary has 5.9% of all condo units in the country. This is about 100,000 units and more are in the process of being built.
If you own or reside in a condo, protect your financial well-being with Condo insurance. The same logic applies to condos as it does to a homeowner’s need for home insurance in Calgary.
Condo insurance works like other types of insurance. You pay a premium in exchange for protection against a variety of perils. You have the option to choose a coverage level that meets your lifestyle. However, there are some unique components of condo insurance you need to know.
- Your condo association policy does not cover your unit. It covers the building's common areas and liability.
- Condo owners are responsible for having insurance for personal belongings.
- Condo insurance is not mandatory but it's required by condo associations
- Your plan includes other coverages for liability, loss assessments, betterments, and additional living expenses.
- Condo owners contribute to the condo association Master Policy via condo fees.
- Condo insurance is regulated by the Alberta Superintendent of Insurance (SOI)
Recent changes to condo insurance in Calgary
As of January 1, 2020, new rules came into effect that require condo owners to be responsible for up to $50,000 if damages to common areas started in their unit. Condo corporations now have the right to seek recovery of the deductible part of their insurance claim to a maximum of $50,000.
For example, a fire starts in your condo. It spreads to the hallway and causes damage to shared areas. The condo corporation will file a claim for the damage caused to the common area. But you, as the condo owner, will be responsible for paying a portion of their deductible, in addition to your insurance claim. Therefore, condo unit owners need to include insurance deductible coverage in their policies. While this will increase your rates, it will give you peace of mind in knowing you are covered.
