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STRATA MATTERS – Insurance Coverage

 

Don’t take your Home for granted – Check your Policy today!

What to look for? Verify with your insurance broker that your current policy fully covers and protects you for your accommodations, improvements and betterments, entire contents, and includes both liability and strata deductible coverage. Check with your Strata Council for all of the important details.

The issue of insurance is commonly overlooked by those shopping for Strata homes, notably first-time buyers, as this group has often not bothered to purchase home insurance for their rental accommodations prior to embarking on this exciting, new real estate venture.

Regrettably, these same buyers seem to be under the mistaken impression that a Strata’s insurance coverage is sufficient for everyone, and everything. Sadly, that is quite simply not the case.

The Strata Council will typically advise all Owners of the Strata Corporation’s sewer back up and water damage deductibles, which are capped at a set rate, which may be as high as $50,000.

This coverage does not offer any protection for any personal property in your home, the replacement value of which quickly escalates for even the most modest of residences.

Please also note that any upgrades undertaken by the owner to flooring, cabinets, and other fixtures are not covered by the Strata’s insurance.

What will this mean for you as an Owner? It means that your Strata Corporation may choose to selectively only file claims with their insurers if the cost of repairs

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It is important to note here that a strata’s insurance coverage basically ‘takes care of the structure itself’, period.

The Strata Corporation will be liable for damage or loss to common property. However, your Strata Council will, in all instances, reserve its right to pursue a strata lot owner for any costs incurred by the Strata Corporation to repair damage or loss to common property if the strata lot owner is responsible for or caused the water loss.

The Strata Corporation also has a bylaw to enable an insurance deductible paid by the Strata to be charged back to the strata lot responsible.

It is crucial that you ensure your home insurance policy has coverage up to the amounts expressed by your Strata Council.

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