Everything in your unit is covered, from the contents of your kitchen cabinets or what’s below the bathroom sink to your winter clothing. The value of all that content is what determines your coverage amount.
You’ve added new tiles in the bathroom, new cabinets in your kitchen or bricks on your fireplace? You’re covered. Your condominium corporation’s insurance only covers items that are part of the original building; it doesn’t cover any upgrades you have made to your unit.
For instance, let’s say that when you bought your condo unit, the floor tiles had a value of $3,000. After making improvements, the value has increased to $7,000. In the event of a loss, you would receive only $3,000 from your condo corporation. The condominium unit owner’s insurance will cover the difference, i.e. $4,000.
In the event of a loss, if your condo corporation’s commercial insurance is insufficient, the burden of the difference will be apportioned between the different condominium unit owners. Your condo insurance then comes into play to pay your portion.
Whether your leaking washing machine causes water damage in your downstairs neighbour’s unit or someone slips on your hardwood floor and gets hurt, liability coverage is there to protect you. If you cause property damage or bodily injury, we will protect you legally or pay out the compensation for which a person may be eligible.