The Difference Between Condo Unit Owners & Tenants InsuranceUncategorizedDecember 23, 2016The latest trend in the current real estate market is to move into a condominium, whether you’re a young single, just started a family, or looking to downsize after living for years in a detached home and all the kids have moved out. There are new condo developments sprouting up all over the GTA or being advertised as coming soon, with scores of people booking in advance to move in either as owners or renters. You may think once you get your unit then just any property insurance policy will provide the coverage you require. But understanding the difference between getting insurance as a condominium owner and insurance as a renter is crucial in obtaining the right coverage for your particular situation, whether you rent or own. For renters, a Tenant Insurance policy covers you with third party liability insurance, as well as insurance for your personal property. That means the belongings you brought with you when you moved into your new rental unit will be covered. The landlord has to purchase coverage for contents that come with the condo unit such as the fridge, stove and any appliances provided to the tenant as well as liability and rental income if they so choose. Tenants insurance applies whether you rent an apartment / condo unit, a house or even a basement apartment in a detached home. For those of you who bought a unit in a condominium, the Condo Unit Owners insurance has some similar coverage that you would get with a Tenant Insurance policy such as your personal contents / belongings. When you purchase condo unit owners insurance, it also covers you for third party liability as well as any modifications you did inside of your unit. However, since condominium buildings are usually under the stewardship and governance of a Condominium Corporation, the insurance to cover the building itself, the common areas (such as hallways and lobbies), recreational spaces like a gym or a swimming pool, and legal liability for the condo board will be purchased by the Condominium Corporation. Should there be any claims greater than the limit purchased by the Condominium Corporation, condo unit owner insurance also provides Loss Assessment coverage to fill the gap. Therefore, it is important for you to understand what you and your condo board are respectively responsible for. If you have questions about condo unit owner and tenant insurance please feel free to contact one of Pacific Insurance Broker Inc.’s knowledgeable Insurance Brokers today at (416) 494-1268.