As a property owner with a mortgage you are required by the lender to have home owners insurance.
Your home owners insurance consists of three parts
- personal contents (includes the structure)
Many people live in a condo or townhouse setting with a strata. The strata is also required to have insurance for the building as a whole. Your insurance covers the floor, walls and ceiling of your unit. The building insurance covers the structure including common areas. They cannot build just your unit without the floor below you or the roof above.
You may have heard recently there has been challenges in getting some strata properties insured. Many insurers have significantly increased the cost of insurance and the deductibles required to make a claim. The cost of the deductible is passed along to the individual who caused the damage. Some examples of how this can affect you are: water damage from a leaky tap or over filled tub seeping into the unit below, or a fire caused by a blocked dryer vent. You will be held personally responsible of the cost of the deductible if you have inadequate insurance coverage. Some stratas have seen jumps up to $250,000 for the deductible of a claim. That is like paying for another mortgage!
I encourage you to bring your recent strata documents with you to discuss your insurance coverage with your personal insurance agent. It is in your best interest to ensure you are properly covered.
Contact me if you would like a referral to a great insurance source.