Do Co-Owners Need Home Insurance

Since the condominium union already has insurance, one wonders whether it is necessary for the co-owners to have home insurance. The answer is yes. Is that the insurance of the Condominium union does not cover your property.

Do Co-Owners Need Home Insurance
Do Co-Owners Need Home Insurance. ©Getty Images/iStockphoto

Your condominium insurance also includes a liability insurance. For example, you forget the bathtub and the water overflows, spawns a path and floods different units. In such a case, your insurance would intervene and your insurer would compensate those who suffered damage.

What else covers the co-owner insurance?
In addition to your civil liability and personal property, a co-owner’s home insurance also covers any improvements you have made in your condo, or those you have acquired at the time of purchase.

What are the improvements?
These are the improvements chosen during the purchase or brought by you over the years:

  • A heat pump that you have installed;
  • A new flooring
  • A granite counter that you had installed

In the event of a claim, it is your insurer that compensates for these improvements while the insurance of the Condominium union reimburses the original value of the equipment. For example: The original countertop of your kitchen, worth $800, was melamine. Your granite counter costs $1500 to be replaced. The amount of $800 corresponding to the melanin will be reimbursed by the insurance of the Condominium syndicate, while the difference to hand over a granite counter, i.e. $700, will be paid by your co-owner insurance.

Keep a list and your bills
Keep a list of these improvements and the costs. In the event of a disaster, it will greatly facilitate the settlement. This makes it easier to determine what your co-owner’s insurance will repay in relation to the portion that will have to be compensated by the condominium insurance.

This is why a condo must be insured by two contracts: that of the condominium Union and that of the occupying co-owner.