Who governs condo corporations in Ontario and what is their importance?
The Condominium Act, 1998 (‘Condo Act’) specifies that a condominium corporation must be governed by a board of directors. The board is elected by condo owners at an annual general meeting. As an owner, you are a member of the condominium corporation and board activities affect your condominium experience.
The board of directors is more than a group of condo owners, overseeing matters such as by-laws which include the maintenance and upkeep of common elements, collecting condo fees, building management, and more. Boards are also required to provide a description of what a standard unit consists of for the purposes of repair and insurance responsibilities—we’ll find out why this is important soon!
Coverages of Condo Insurance
Personal Property
Personal contents such as clothing, furniture, appliances, items stored in a locker and more!
Improvements and Betterments
Coverage is provided for improvements and betterments made or acquired by you. Coverage includes any structure on the condominium property that is owned by you or available for your exclusive use and which you are required to insure, as well as all items of real property that are part of your unit as defined in the Condominium Declaration.
Common Elements Loss Assessment
We will pay your share of an assessment resulting from a deductible in the Condominium Corporation’s insurance policy.
Unit Additional Protection
We cover damage to your unit if the Condominium Corporation has no insurance, its insurance is inadequate, or it is not effective.
Liability
Liability for any bodily injury or property damage unintentionally caused to others.
At Unica we offer a Global Limit of Condominium Protection with limits of either $1,000,000 or $1,500,000.
The advantage of Global Limit coverage is that every building’s definitions are different and understanding what a personal condo policy should cover versus the condo corporation’s policy can be challenging. Having a global limit allows coverage to be used where needed and provides an Insured with claims settlement flexibility in the event of a loss.
Why is having a Global Limit of Condo Protection important?
Condo owners may decide to make improvements and betterments to their units (or they may have been done by prior owners) that the condo board’s insurance policy will not cover.
Through condo expense fees, condo boards are required to have a reserve fund which would be used to pay for major repairs and replacements to the condominium’s common elements. Their insurance deductible may be set at a high limit, requiring all condo owners to pay the additional costs.
As a condo owner, having a dedicated policy will offer you protection beyond the coverage available under your condo corporation and offer you peace of mind when needed—even outside the comfort of your unit.
