Why Have Condo Insurance?
Over 2 million Canadians live in condos and there are multiple benefits, including affordability, but why are so many owners underinsured or not insured at all?
Yes, condominium living has multiple advantages and it is definitely a way to get started on becoming a home owner.
5 Reasons For Owning A Condominium
Generally speaking, condos are less expensive than a single family dwelling, based on cost per square metre. And if you’re already renting and opt to purchase a condo, your money will be going toward equity instead of into a landlords’ pocket.
No need to shovel snow or cut grass if you’re living in a building that looks after the chores, plus if you need repairs to the exterior or common areas, the condo association will deal with those issues.
Many condos buildings have pools and gyms attached, as well as grocery stores, pharmacies and other such services. Quite often there’s no need to even go outside or drive when these amenities are accessible through connected corridors or walkways.
If you’re the type of person who is away a lot, there’s less concern for the security of your living space when you live in a condo. Things like the mail piling up and no lights on, grass not cut or snow not shovelled, vehicles not moved, and other such signs of absence are less of an issue in a condo. You’ll still need someone to pop in and check on your place on a regular basis but it’s way easier to get a house sitter when they know that there’s the “No Maintenance” aspect!
Lower Insurance Costs
Condo associations carry insurance for the building so owners need only get coverage for their own basic liability and contents, far less costly than that on a single family dwelling.
But what about that insurance element again? Even a tenant in a rental unit should have coverage for their possessions and liability, and for a condo owner there’s added incentive to ensure that proper coverage is in place.
Think about what it would cost to replace every single item in your condo in the event of a fire that causes a total loss. All your clothing…socks, underwear, jeans and dress pants, shirts, sweaters, blouses or ties, blazers or jackets, hats, mitts, gloves and scarves….the list goes on and on. And that’s just your clothing. There’s sheets and blankets, pillows and duvets. Towels and bathroom items like toiletries. Stereo equipment and personal devices like phones and laptops. You get the point and will now know that most people are surprised by the exercise of cataloguing all their household items and even more so when tabulating their replacement cost.
Typical price of contents in an average sized single bedroom apartment or condo is $30,000 plus!!
Oddly, many people don’t realize that they are responsible for the liability with their own units as well as coverage for it’s contents.
Did you also know that Condo Boards/Associations can go after the owner of a condo unit for the deductible associated with a loss in the building if it is determined that the damage was caused by something in that owner’s unit. When you consider that in an effort to keep insurance premiums low many Condo Boards carry a fair bit of risk retention in the form of high deductibles. That could mean deductibles ranging from $50,000 – $100,000 for which a condo owner could be on the hook for and which is why proper insurance coverage will include a “condo deductible loss assessment clause”.
But why stress about this when you can give BlueCircle a call and talk to one of our professional brokers. We offer a minimum $40,000 contents coverage for a very reasonable price, even more affordable when bundled with auto insurance.