Condominium Owner

Condominium owner can mean the owner of the entire building which is usually a corporation. Or it can mean the individual condominium unit owner.

The condominium corporation as an owner of the outside of the structure and the common areas must be sure to have adequate coverage in place. This needs to be enough to rebuild if necessary. The liability limit needs to be sufficient to provide protection from lawsuit for claims due to liability losses. These claims may never get paid but the coverage has to be there to provide the defense costs necessary to prove innocence. If there is a case of negligence then the funds need to be there to pay out the claim.

The condominium unit owner does not have control over what the corporation is doing with the building insurance. So the unit owner needs to have some extra coverage in case of an assessment or a failure of the corporation's insurance to cover a claim.

The condominium unit owner also needs to have liability coverage for personal world-wide liability coverage. This liability coverage could extend to damage done to other parts of the condominium corporation. The improvements and betterment that have been done to the unit need to be included in the amount chosen for contents and personal property coverage.

The condominium corporation can have coverage to provide for the rents that would have been paid but are no longer available due to an insured loss. The rented condominium unit insurance can also pay out to the owner for lost rents that will help to cover any mortgage or standing charges that continue after a loss such as a fire has occurred.

It is important that you understand the values of what you need to insure. What is or is not covered under the condominium corporation policy? What limits should you choose? These are good topics for discussion with your broker or agent.