If you are a condominium owner, then you know that there is a lot of paperwork and information to sift through. One of the most important documents for condo owners is the master insurance policy. This policy outlines what is covered as well as what the Ontario Condominium Act requires for insurance. It’s important to familiarize yourself with this document so that you understand your rights and obligations when it comes to condo insurance coverage.
What is Covered by the Master Policy?
The master policy provides coverage which includes all common elements owned by the corporation, such as hallways, parking lots, elevators, roofs, lobbies, etc. The master policy also covers any liability claims against the corporation due to injury or damage caused to another person or property on common elements or areas owned by the corporation. In addition, some policies may include coverage for directors’ and officers’ liability and errors and omissions liability for certain professionals who provide services to the corporation (e.g., lawyers).
What Does The Ontario Condominium Act Require?
The Ontario Condominium Act requires that condo corporations have an adequate amount of insurance coverage in order to protect their assets and liabilities from potential losses. This means that condo corporations must carry enough insurance coverage to cover rebuilding costs in case of a disaster (even if they don’t actually rebuild), general liability coverage in case someone gets injured on their property, as well as additional special types of insurance depending on individual needs (e.g., personal property of board members).
How Does A Standard Unit Definition By-Law Affect Insurance Policies?
A standard unit definition by-law affects master policies because it outlines which items are included within each unit’s boundaries. These items will be insured under a separate individual unit policy rather than under the master policy; this means that each unit owner will need to purchase their own individual unit policy from an insurer in order to cover these items in case of loss or damage due to theft or fire – even if these items are located within common areas owned by the corporation (e.g., balconies). It’s important for condo owners to review their standard unit definition by-law carefully so they understand exactly what items are included in their individual units and which items will be covered under the master policy instead.
Understanding your condo corporation’s master insurance policy can be tricky but it’s essential if you’re a condo owner looking for protection and peace of mind in case something goes wrong with your property or investment. Being aware of what is covered under your master policy, what is required by law when it comes to insurance coverage, and how a standard unit definition by-law affects your individual unit policies are all key pieces of information that every condominium owner should know before signing off on any new policies or agreements with their insurer. Doing your research now can save you time, stress and money down the road!
How can SPM Help?
Discover peace of mind with our comprehensive Insurance Review service, designed to simplify your insurance shopping experience and ensure you’re always protected at the best price. We take the hassle out of finding the right coverage by shopping with multiple brokers and providers to present competitive pricing options tailored just for you. Our meticulous approach guarantees that you have adequate coverages and appropriate deductibles, so you’re never left exposed.
Our service goes beyond numbers, providing detailed reviews and summaries that translate complex insurance jargon into clear, concise information, making it easier for you to understand exactly what you’re getting. For condo owners, we offer town hall style meetings—a unique opportunity to ask questions and gain clarity directly from experts, reinforcing our commitment to customer education and satisfaction.
We understand that life changes, and so do your insurance needs. That’s why we conduct an annual review to ensure you always have the best pricing and coverage options available, adapting as your circumstances evolve. Protect what matters most effortlessly—schedule your Insurance Review today and step into a future of secure, informed living.
Contact us today and let us help you.
