Insurance Corner
Condo insurance- Doesn't the Master Condo Policy cover me?
by Martha Marton

Well, yes and no. The Master Insurance Policy does cover some things, like damage to the building structure and common areas as well as third party liability, but there are some important coverage's that should be insured through your own condominium homeowner's policy.

An important consideration is how improvements to your unit are covered. The Master Insurance Policy covers the unit as it was built. If you or a previous owner finished the basement, renovated the kitchen or installed hardwood floors, then those changes need to be insured under your individual policy as Improvements and Betterments Coverage. (If you are not sure what constitutes a "base" unit, your condo board or property manager will probably be able to help.)

Of course, you will insure your personal possessions under your own policy. You will be choosing a limit of insurance for all of the contents in your home, so be sure to calculate as accurately as possible the replacement value of your possessions to avoid being underinsured. If you have high value items such as jewelry, fur coats, art, collections, etc, you may want to consider scheduling those items to be sure they are adequately covered. Business pursuits should be insured separately.

Coverage is also available to cover your percentage of damage to the building that is over the Master Insurance Policy limit (Unit or Loss Assessment Coverage). Also, if the Master Insurance Policy has a large deductible, more restrictive coverage or does not cover an insured loss, coverage is available to cover your percentage of the occurrence. (Master Policy Contingent Coverage).

Your policy will also cover your personal liability. If you started a kitchen fire and your neighbor's unit suffered smoke and water damage, you would have personal liability for the cost of repairs. If the Master Insurance Policy wordings or limits were inadequate, your policy could also provide some protection from an incident occurring in the common area.

If you become a Director or Officer of your condo association, be sure that Director's & Officer 'Insurance exists and that you are comfortable with the financial condition of the condo association. Discuss with your broker the ramifications of serving in that position and how you can best protect your personal liability exposure.

For additional information, contact Martha Marton at Tupling Insurance Brokers Limited (705) 458-8111 marthamarton@tuplinginsu rance.com

Tupling Insurance Brokers, 1070 Innisfil Beach Road, Innisfil, ON L9S 4T9