Condo Insurance

"Why do I need home owners insurance, its listed right here under my condo contributions?"

               This question fills me with fear.  This is why I always try to bring up the subject of insurance before clients hear about it from somebody else. Any Condominium that someone would want to buy will have insurance. Your insurance is paid for by a portion of your condominium contributions. This is not personal insurance! The insurance that you pay out of your condo contributions is corporate insurance. It covers the corporation in the event that the building gets struck by lightning or other natural disasters so that they can fix the building with no other cost being incurred by you. The other main need for corporate insurance is if the mail man slips on ice on the common property he can sue the owner of that land which is the corporation and by relation yourself and all your condo contributing friends. This all sounds like great news, you say "I’m Covered!"  

                I have some very bad news; your building has just burnt down. You’re standing outside in your bathrobe asking your neighbour where to put in the claim for your plasma 72" big screen TV with surround sound and your leather sectional sofa. This is really not the optimal time to discover that your insurance only covers the corporation; it doesn’t cover your hard earned personal possessions. So if you live in a condo, and don’t have homeowners insurance I hope that you don’t have any expensive possessions.

      Mike Frechette & Rayna McKay

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