Archive for November, 2012

Is Your Insurance Policy Putting You in Jeopardy?

Sunday, November 25th, 2012

Vancouver CondosAn article in the Vancouver Sun alerted us to a potential problem for many of our customers — specifically those of you who own condos.

 

“Some Metro Vancouver residents have been shocked to find, after a leak in their unit causes water damage to other parts of the building, that they are required to pay the entire deductible on the strata council’s insurance policy, which can amount to $100,000 or more.

Many condo owners have their own unit policy that covers a portion of the deductible on the strata corporation policy. But some are finding out the hard way their insurance covers only a fraction of the larger deductible – usually about $10,000 – or in some cases, not at all.”

 

Unfortunately many condo owners believe that the Strata Association’s insurance policy covers them for everything. It does not. You must have your own insurance policy to cover anything inside your condo, including your personal property, and any liability issues.

 

With increasing insurance costs, many Strata associations are now resorting to larger deductibles and are changing their bylaws to make individual owners responsible to pay the deductible even if they are not negligent in the cause of the damage.
Alan Rees, a longtime insurance broker at KRG says that you MUST read the rules.  It is up to you, the owner to make sure your insurance policy will cover whatever the Stara Association’s policy doesn’t cover.

The solution is to make sure your own unit insurance covers the strata deductible. Rees said he pays $20 a month for such coverage, which is worth $100,000.

 

If you own a condo, please read your Strata bylaws and make sure you have the necessary insurance. If you are not sure whether you are covered or not … call your Strata Manager and your Insurance Agent.  Thirty minutes of your time could save you a lot of heartache!