Written by Teresa Nguyen, CIP, CRM and overall, insurance enthusiast
There's lots of scrambling and confusion going on right now. Insurance premiums are on the rise, condos can't get insurance or can't get enough insurance to fulfill the Act requirements - board members, are you certain you're getting the right advice? Owners, are you prepared for what's to come?
Insurance is already a complex topic, in itself. Living in a house is simple - something breaks, leaks or burns in your house.... you pay the deductible and a single insurance policy pays the rest. So what happens to this process in a condo building? A whole lot more.
In a single insurance claim, just look how many parties might be involved:
The residents impacted by the damage
An adjuster working on behalf of the Corporation
One, maybe 2 handfuls of insurance companies insuring the one Corporation
The Property Manager
One insurance company representing each resident
One adjuster representing each of the insurance companies for the residents
The Condo Board
Have you considered the following:
Are there loss prevention measures that could have been put in place before the losses happen?
Each of these parties fulfills different roles and responsibilities during a condo claim
Having the right coverage ensures that the unit owner's personal policy 'fits' with the Corporation's insurance
Without the right coverage, owners could be out of pocket up to $50,000 or the applicable insurance deductible, whichever is less.
The wrong advice and process could cost the Corporation literally thousands of dollars in lost recovery.
Unnecessary delays in the restoration of damaged property is frustrating for everyone involved.
If you're interested in understanding condo insurance and how you can best prepare your owners, talk to us today. We're happy to help.