FAQ Condominium - CA
Here is a list of insurance coverages we recommend you obtain for your condo association.
Here are 4 reasons for you to obtain insurance for your unit:
- Contents Insurance
Condo property insurance does not cover improvements and personal property such as furniture and electrical appliances. The insurance that the condo association organizes basically covers the structure of the building and any fixtures inside lots such as sinks, baths and plumbing.
- Unit Additional Protection
If there is a loss to the property in amounts in excess of amounts insured by the condo association, the shortfall will be passed onto the unit owners in the form of a special levy.
- Liability Insurance
An owner will not be defended by the condo association’s liability insurer against claims for property damage and/or bodily injury, even if the claim arises from an injury suffered on the common property.
- Supplementary Insurance Covering the Building’s Deductible
The coverage protecting the co-owner against insufficient insurance from the condo association also covers them if they are required to reimburse the association’s deductible when settling a claim. It is recommended that co-owners take out insurance that provides them with coverage corresponding to at least the amount of the “water damage” deductible of the building’s insurance policy. The condo association could sue a co-owner who is deemed responsible for the claim for reimbursement of the deductible. Many condo associations have also adopted by-laws that allow them to charge the cost of the deductible to the responsible co-owner without having to sue the co-owner.
The vast majority of condo associations rely upon independent insurance brokers to arrange their insurance. The role of an insurance broker is often misunderstood. An insurance broker is an independent agent who represents the buyer, rather than the insurance company, and tries to find the buyer the best policy by comparison shopping. The insurance broker’s job is to:
- Negotiate with the insurer(s) on your behalf finding the best price, often searching many insurance markets.
- Identify your insurance needs and ensure your condo association has adequate coverage.
- Advocate on your behalf any claim dispute you may have with the insurer.
- Promptly answer any insurance related questions you may have.
- Provide you with all documentation legally required.
- Ensure the condo’s association insurance policy is in compliance with all provincial and Canadian insurance statutes.
An insurance premium is the amount of money charged by an insurance company for active coverage.
Premiums for a condo association are determined by insurance companies through a variety of factors such as:
- Age of the building
- Construction details
- Fire detection and suppression systems
- Amount of the deductible
- Security features
- Claims history
- Replacement cost value
- Latest appraisal and more
A deductible is a sum of money a condo association pays before an insurer will provide the benefits outlined in an insurance policy.
The purpose of a deductible is to keep the cost of insurance lower and to prevent condo association from making claims when the cost of loss is small. When a condo association needs to make a claim, it must first incur the deductible in full; the insurer then steps in to cover the balance of the insured costs, up to the limits outlined in the policy.
The insured or property manager should secure as much information as is available: such as loss date & location, identity & coordinates of all parties involved, cause, nature & extent of damages, police case number, etc.
Emergency work should be initiated as soon as possible to mitigate loss, control damages and minimize impact on owner(s) and residents. Qualified and approved contractors only should be called in to ensure quality and service standards are met and costs are justified.
The claim should be reported as soon as possible directly to the BFL CANADA Claims Department by telephone in case of emergencies and/or facsimile or e-mail in other cases. Use of the “Insurance Claim Report” form.
BFL CANADA Claims Department should be notified when initial contact by an adjuster is not made in a timely manner after a claim is reported (IE: within 24 hours).
All repair specifications, estimates and/or quotes should be forwarded to BFL CANADA Claims Department for records purposes and immediate delivery to the appropriate adjuster.
Invoices for repairs are not usually paid by The Owners, except for specific invoices in the amount of the applicable policy deductible. All other invoices should be forwarded to BFL CANADA Claims Department for records purposes, immediate delivery to the adjuster and direct payment to the contractor or trade.
All incidents should be recorded with all available information such as time and date of incident, exact location, identity & coordinates of all parties involved, nature and extent of damages if known, etc. Incidents should be reported to BFL CANADA Claims Department as soon as possible.
Any development, activity and/or documents related to an incident should be reported or dispatched as soon as possible to BFL CANADA Claims Department.