As a condo unit owner, there may be some confusion around who is responsible for securing insurance of certain elements—especially if you’re a commercial condo unit owner.
There’s an age-old question that many insureds ask: “Do I need to have insurance for my condo unit when the corporation has insurance in place?” The answer is a simple yes! Unica makes it easy for commercial condominium unit owners to have the proper coverage in place with our Condominium Unit Owners Endorsement. The endorsement provides coverage for three scenarios that a unit owner may face.
Unit Owners Contingent
Unit Owners Contingent provides coverage for an insured’s own unit in the event the condo corporation does not have sufficient funds or there is no insurance in place. While this is a rare situation, it is always important to have coverage in place.
Imagine a scenario where a fire damages the condominium building, including your unit, and the corporation did not have adequate insurance in place. Your standard unit would have been covered with the corporation’s policy, however, Condominium Unit Owners Contingent coverage would respond and cover the unit owner for the shortfall in the corporation’s policy.
Unit Improvements and Betterments
Unit Improvements and Betterments provides coverage for any improvements or alterations that have been performed to a unit outside of the standard unit definition. This coverage will also apply to any improvements performed by a previous owner.
Picture a scenario where a burst pipe causes extensive damage to your newly renovated unit, including improvements you’ve made to your flooring, wall finishings and built-in storage fixture. Without Unit Improvements and Betterments, none of the damage to these improvements would be covered in the standard unit definition.
Loss Assessment
Condominium Unit Owners – Loss Assessment provides coverage for any loss or damage to any portion of the building common elements that is assessed back to the unit owners.
Imagine you own a commercial condominium unit in a downtown office building where a visitor slips and falls in the grand lobby. The resulting settlement exceeds the coverage that the condominium corporation has in place and the excess of their limit is now assessed to all unit owners in the building. Loss Assessment coverage provides for the amount assessed to the unit owner.
This endorsement provides a single limit of insurance that is blanketed amongst the three coverages.
Ensuring you are adequately covered in the event of a loss is essential to protecting your commercial condominium.
Speak to your Dedicated Underwriter about Unica’s Commercial Condominium Unit Owners Endorsement to make sure your client’s growing business is properly insured.
