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Many people believe that they are fully insured because they
have a Condominium Association insurance policy as part of
the monthly maintenance fees they pay. THIS I S NOT TRUE. In
most cases, association policies do not cover your kitchen
cabinets and other fixtures as well as your interior walls.
Furthermore, the association policy never covers your
personal liability or personal property.
If you wish to have personal liability coverage as well
as coverage for the interior of your condo, your furniture,
your clothing, and other personal property, you will need a
personal Condominium Unit Owner’s Policy.
In addition to providing the above-mentioned coverage’s,
a unit owner’s policy will provide Loss Assessment Coverage
and Loss of Use. Loss Assessment Coverage protects you when
the condominium master policy’s limits are insufficient to
cover a loss. You can be assessed with a loss even if the
damage or liability does not affect your unit. |
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Loss of Use will help pay your expenses if you cannot
live in your home due to a covered loss. This applies even
if your unit does not suffer any damage. For example, if you
have to evacuate due to a fire in another unit.
Your condo/townhouse by-laws outline the coverage
provided by the condominium master policy. Consult your
association for interpretation of your by-laws to determine
what is/is not covered by your association’s policy.
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