Are you protected?
Recently, Allstate Insurance Company of Canada and Abacus Data released some research that shows many condo owners are lacking critical knowledge about their insurance coverage, which could lead to costly mistakes.
Here are some of the major findings:
- 61 per cent of Canadian condominium (“Condo”) owners don’t know or incorrectly assume their building’s insurance will cover damage to another unit from water or fire that originated in their unit
- 74 per cent of Canadians looking to purchase a condo in the next few years don’t know what their personal insurance cover versus what the condo corporation’s insurance should cover.
- Only 39 per cent of condo owners and 26 per cent of condo buyers know that the belongings of a roommate or boarder are not covered under their personal condo insurance policies.
- 21 per cent of condo owners are not aware that the condo corporation’s insurance is responsible for incidents like falling concrete and shattering glass from condominiums.
As a condo owner, there are things you can do to make sure you are protected:
- Ask your condo board or management company to explain what the building’s insurance policy does or does not cover.
- Talk to your insurance agent about your policy. Being properly covered can prevent your getting stuck with the bill if your condominium’s policy falls short.
- Remember that damage done to your car in a garage or belongings in a storage locker are covered under your personal policy and not the building’s policy so you should ensure your coverage properly protects your car and any items you have stored in your locker.
- Right now we (COA) are partnering with Allstate Canada to help educate Canadians about their condo insurance. We’re running a contest to find a GTA Condo Hero – a concierge, security guard or property manager who makes a big difference to the lives of condo owners.
Posted in fire theft liability, FYI, insurance, The Condo Act
Tagged allstate insurance, condo insurance, condo issues, condo owners, Condominium Information, fire, floods, liability, risk, theft
A Condominium budget experiences about 30% of their operating budget for utility costs.
How much HST is there on utilities province wide. COA reviewed documentation on discussions between the Government, Energy Consultants, Ontario Energy Board, Ontario Hydro and OPG.
In May 2010, the Ontario Government ordered the Province’s Crown-owned electricity utilities to cancel their requests for hydro rate increases because they were worried about consumer backlash over soaring power costs. The Government’s rate-setting process is designed to take the politics out of electricity pricing because it was determined that Condo Owners and Homeowners are already facing increases of $300 more a year on average to keep the lights on by the end of 2011. Continue reading
It is common for Condo Owners to be angry with the Property Managers blaming them for not returning their phones calls and/or not resolving their problems. Property Managers ignore their requests for help; frustrations develop and Condo Owners become angry and hostile towards Property Management.
Condo Owners are barking up the wrong tree.
The Board of Directors are to blame because they have the power. The Board controls all of the operations of the building which includes contracts and all service related trades. They approve Property Management contracts and the Property Management company designates a Property Manager to the building to do as the Board says at all expense because they want to ensure their contracts. There is alot of money involved; many of these contracts can range from $120,000 to $300,000 depending on the size and amount of buildings involved. It is a very serious stake in the Condominium World but one that has created major controversy of responsibility because even though these Firms are paid by the Corporation they report to the Board and in most cases believe they represent the Board.
Be wary of getting into arguments with Property Management because once they report back to the Board of Directors; chances are you will have more even more problems afterall it is the Board who is instructing Property Management to ignore your requests. If you have a good Board – it would never get this far.
How do Condo Owners know if their Board is operating in compliance to the Condo Act? The $1 Million dollar question can be answered only if Condo Owners start taking responsibility and learn about Condos, watch their Boards and speak out if they feel things are wrong. Until then; Owners will suffer the consequences of disputes, theft, fraud and a serious problems with their Board of Directors.