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Insurance is one of those things that most people take for granted. As long as we know it’s there then it is bound to save whatever it is that we are paying for. This, in part, is true, but it’s not the whole story. Having comprehensive insurance is an extremely important aspect of owning a condo, renting a condo, or owning multiple condos or even a building. Knowing what that insurance includes, and perhaps more importantly, what it doesn’t will go a long way in quelling any anxiety that crops up should something bad happen to a property.
We think it’s important to know what your insurance protects you from and what it doesn’t. Since each type of insurance we’re going to discuss is a little different, each one will contain a few aspects to it that no one tells you about. We thought it would be beneficial to discuss some aspects of insurance for condo owners, tenants or renters, and condo investors, perhaps have not been told about or heard of. Again, it’s important to know what your insurance policy contains and how comprehensive it really is. With that in mind, here are a few of the things no one tells you about condo insurance.
Asset Management: Condo Owners
Since you contribute a payment to an HOA and that includes some insurance to it, you probably think you’re mostly covered. While this may be true, it’s important to know what the HOA takes care of and what is left to you. For instance, the contents of your condo aren’t going to be covered by the HOA so that is a part of your condo that falls to you and you own insurance policy.
Something a lot of people get confused is that everything that happens within the walls of your condo is your responsibility. This means that while structural issues to the building will fall to the HOA, things that need improvement within your walls fall to you and your insurance. Don’t get confused as these issues can end up costing a large sum of money.
Asset Management: Tenants
A tenant’s insurance is the simplest version of the three types discussed today. This is due to the simple reason that since the tenant does not own any of the property they are merely in charge of looking after the things they own within the condo. Renter’s insurance is also known as contents insurance, as, again, one is simply insuring the contents of the apartment, not the apartment itself. This type of insurance lets the tenant select the amount of insurance that is roughly equivalent to the value of the contents within the condo.
There are add-ons to this type of insurance as well, and one would be well advised to take advantage of them. For a few extra dollars, a tenant can be covered for fire, water, sewer issues, as well as specific and costly items like jewelry, electronics, or art. It’s always a good bet to play things safe and insure as much as you can if disaster strikes. Taking the cheap way out typically does not pay dividends.
The third type of insurance we need to discuss is that for those who own their condo as an investment and are renting it out. This insurance, while more comprehensive, ends up looking like the opposite version of renter’s insurance. Since the contents within the condo you own are not yours, you’re on the hook for insuring the interior structure. This includes the walls, plumbing, appliances, floors, etc.
What you’ll also need in this case, and something you may not know about is liability insurance. This covers you in the event that someone gets injured or their belongings get damaged in your condo. This will insure you from the bills that will come with potentially getting charged with being responsible.
Alberta Property Management
If you are looking to learn more about what works best for you, we here at Magnum York offer professional property management services throughout Alberta, with offices in Calgary, Edmonton, Olds, and Red Deer. A call or visit to any of our offices will go a long way in alleviating any immediate and long-term concerns you may have. The value a professional property manager can add is immeasurable and something we take pride in doing. Don’t hesitate to let us know if your property needs the care and assistance it deserves; we’re always standing by waiting to offer you our services and professional touch.