Key points
- Request the current corporation insurance summary.
- Ask about deductibles and chargebacks.
- Match unit improvements and contents to your own policy.
Two layers of coverage
The corporation policy generally addresses property for which the corporation is responsible, subject to its terms, limits and deductibles. Your own policy may need to address contents, improvements, personal liability, loss assessment and living expenses after a covered event. Coverage varies by province, corporation and insurer.
Do not assume the word “condo insurance” means all water damage is covered. Ask an insurance professional to walk through a realistic leak or fire scenario using the actual documents.
Deductible exposure
A large building deductible can change an owner’s potential exposure. Ask whether the corporation can charge a deductible back to a unit owner and under what circumstances. The Government of Alberta maintains condominium insurance guidance and interpretation bulletins for these issues.
If the inspection report notes previous water entry, obtain the repair and claim history available to the buyer. An inspection finding does not by itself establish who caused or insured the damage.
Review coverage before and after closing
Give your insurance broker the legal unit description, corporation documents and details of improvements, parking and storage. Confirm effective dates, exclusions and claim procedures. Keep the policy summary and relevant corporation correspondence with your purchase records.
Insurance cost is part of the total ownership budget. It can change at renewal, so avoid basing affordability only on a prior owner’s premium.
Common questions
Does the corporation policy cover my belongings?
Do not assume so. Ask your insurance broker what the corporation policy covers and what your own unit policy must cover.
Sources and further reading
Primary references for legal and financial background. Inspection scope and provider services should always be confirmed for the specific property.