Imagine a fire damages your condo. Relief washes over you, knowing the building itself is covered. But wait! Your furniture, electronics, and those beautiful new countertops? They are not covered by the condo corporation’s insurance. That’s where your personal condo insurance steps in.

What Your Condo Insurance Protects:

• Your Personal Belongings: Furniture, electronics, clothing, jewelry, and other possessions inside your unit are covered against perils like fire, theft, and water damage.
• Unit Improvements & Upgrades: Any improvements you’ve made to your unit, such as custom flooring, kitchen renovations, bathroom updates, or other upgrades that exceed the standard unit features.
• Personal Liability Protection: If someone is injured in your unit or you accidentally damage someone else’s property, liability coverage helps with legal and medical costs.
• Additional Living Expenses: If your condo becomes uninhabitable due to a covered loss, this coverage pays for temporary accommodations, meals, and other necessary expenses.

Personal Property Coverage Options

When protecting your belongings, consider these important options:

• Scheduled Personal Property: For high-value items like jewelry, art, or collectibles that may exceed standard policy limits. These items are specifically listed (“scheduled”) with their appraised value.

Additional Coverages Worth Considering

• Home Systems Protection: Covers the breakdown of appliances and systems like air conditioning, which standard policies typically don’t cover. Particularly valuable for newer condos with modern appliances and systems.
• Water Damage Protection: This includes sewer backup and overland water coverage. Water damage is one of the most common condo claims, especially in multi-unit buildings where issues in one unit can affect others.
• Identity Theft Protection: Covers expenses related to identity fraud, including legal fees and lost wages. This is increasingly important in our digital world.
• Glass Breakage: A reduced deductible specifically for glass breakage can be valuable, especially for units with large windows or glass doors.

Calculating Contents Coverage

Follow these steps to determine how much content coverage you need:

1. Create a home inventory: Take photos or video of each room. List high-value items separately.
2. Estimate replacement cost: How much would it cost to buy everything new today?
3. Consider special items: Jewelry, art, and electronics may need additional coverage.

Selecting the Right Deductible

Your deductible is what you’ll pay out of pocket when filing a claim. Consider these factors when selecting a deductible:

• Your emergency savings: Could you comfortably pay $1,000, $2,500, or more in an emergency?
• Premium savings: Higher deductibles lower your premium. Calculate if the savings justify the increased risk.
• Claim frequency: If you’re in an area prone to certain types of claims (like water damage in older buildings), a lower deductible might be worthwhile.
• Value of your belongings: Higher-value contents might warrant a lower deductible for better protection.

Understanding Contingent Coverage

Contingent coverage protects you if the condo corporation’s insurance is inadequate or unavailable for a covered loss.

This coverage becomes especially important in:

• Buildings with inadequate master policies
• Older condos with potentially outdated coverage
• Situations where the corporation’s deductible is very high
• Cases where the corporation’s policy has been depleted by multiple claims

The Importance of Loss Assessment Coverage

Loss assessment coverage protects you from unexpected financial responsibilities when your condo corporation levies special assessments for covered losses to common areas.

This coverage typically applies to:

• Property damage to common areas exceeding the corporation’s insurance limits
• Liability claims against the corporation that exceed its coverage
• The corporation’s master policy deductible (which can be substantial)
• Special assessments for covered perils like fire, lightning, explosion, etc.

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