What's included in condo insurance?
Your condo insurance coverage can be set up to protect you, your condo, and your property so that if something goes wrong you’ll have the backing you need at a time when you need it most. Some of the things you’ll want your condo insurance coverage to include are:
Your personal property. Basically, your stuff, your property, your contents. Stuff that can really add up in the event of a loss—clothing, appliances, furniture, pots, pans, linens, electronics, computers, sound systems, golf clubs and the like.
Your personal liability. If someone visits you and slips and falls in your unit because they tripped over your area rug, you could be held liable if sued and your condo insurance coverage would kick in. Liability also provides coverage for damage you might accidentally cause to other parts of the building. For example, misadventures in the kitchen that start a fire and cause damage to the units of neighbours, would likely be covered by your condo insurance policy.
Upgrades you’ve made to personalize your home. Just like any other homeowner, there’s always something you may want to improve or change. If you renovate your unit and make upgrades to it (say for example, you add a Jacuzzi bathtub, lay better carpet, install hardwood, add new cabinetry, or a granite countertop) the value of these improvements will be factored in, in the event of a loss like fire.
Living expenses. If you cannot live in your condo unit while repairs are being made after an insured loss, your condo insurance will also help to cover some of your additional living expenses, such as moving costs, a hotel room, storage and more.
These four components typically make up the foundation of a condo insurance policy.
What determines the cost of condo insurance?
There are a wide variety of factors insurance companies consider when deciding how much to charge you for your condo insurance. Insurance companies analyze these factors and determine the likelihood that you or a group of people with the same set of circumstances as you will make a claim and how much it will cost. Some of these factors include:
Where you live
Type of heating source
Type of electrical distribution
Primary use of your home
Your claims history
Proximity to fire hydrant and fire station
Proximity to surrounding businesses
Cost to rebuild