Whether you vacation in Tobermory seasonally or live here year-round, condo insurance is a crucial component of being a condo owner.
While not the most glamorous topics, it’s incredibly important that every Tobermory condo owner understands the ins and outs of their condo insurance policy so they can be properly informed in the event that an issue arises.
In this article, we will explain the most important facts about condo insurance that every Tobermory condo owner needs to know.
With any type of home ownership, insurance is needed to protect the homeowner in the event of a disaster or unexpected event that causes damage. The same goes for condominiums. When you purchase a condo, condominium insurance is required to protect the owner in the event of damage to or loss of the inside of the condo unit and storage unit if one is included. Condo insurance also offers coverage in the event that someone is injured in your home.
While every plan is different, condominium insurance typically covers:
Such damage can occur due to:
When any of the above types of damage occur, the homeowner can file a claim to be reimbursed for the cost of the damage.
As previously mentioned, condo insurance provides the condo owner with coverage in the event of loss or damage to the condo unit.
When an unexpected event occurs and causes loss or damage to your unit, the financial consequences can be huge. Without condo insurance, you could be forced to pay up to tens of thousands of dollars out of pocket to cover the cost of the damage.
Similarly, if someone is injured on your property, you may be financially and legally liable, resulting in a lawsuit or settlement that ends with you paying out thousands of dollars. In both of these situations, condo insurance protects you.
In Tobermory, our beautiful community on Bruce Peninsula is incredibly scenic due to its proximity to Lake Huron and Georgian Bay. However, this also makes Tobermory more susceptible to flooding.
For any Tobermory condo owner that lives close to the water, a comprehensive condo insurance policy that is amended to include coverage for floods is absolutely critical.
As with any type of insurance, condo insurance can be very complex. Below, we will go over some of the most important things condo insurance policyholders need to know about condominium insurance.
Many condo owners mistakenly believe that they do not need a comprehensive condo insurance plan because their condo association has its own insurance. This is false.
While all condo associations have condo association insurance in place – also known as a master condo policy – this insurance will only protect the exterior of the building and common areas such as:
A condo master plan will also protect condo associations when someone is injured on the premises.
Something that not a lot of people know is that if you become the victim of identity theft and experience a financial loss, you may be able to file a claim for compensation from your condo insurance if you have identity theft included in your policy. Depending on the provider, identity theft can be an optional add-on to your condo insurance policy.
Many people mistakenly believe that their auto insurance policy will cover the theft of personal items from a vehicle. In actuality, your condo insurance will cover this. In the event that your car is broken into and personal items are stolen while your car is parked in front of your condo, you can file a claim with your condo insurance.
It’s important to note that the theft of your vehicle or damage to it will not be covered by your condo insurance.
If you are renting out your condo unit to tenants, your condo insurance will not cover the damage of or loss of your tenants’ possessions. Therefore, it is a good idea to advise your tenants to obtain their own tenant insurance.
One of the most common condo insurance claims is for water damage. However, it’s important to understand that most condo insurance policies do not automatically cover certain types of water damage. In Tobermory where flooding is common, speak to your insurance company to get advice and ask if you can add coverage for flood damage to your condo insurance policy.
As with any type of insurance, the cost of your policy depends on certain factors such as:
Whether you already own a condo in Tobermory or are looking to buy, condo insurance is absolutely necessary. Contact our team of condo insurance experts at PAIB Insurance today to get a free quote and learn more about how our policies can protect you when unexpected events happen.
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