By Lise Michaud Here are some useful thoughts on a question that clients ask me frequently. Question: as a co-owner, I pay condo fees that already include an insurance coverage. Why should I buy a complementary insurance? Answer: because the coverage granted by the condo association insures the building to its value as new, and against robbery and fire. As a co-owner, you have the responsibility to insure your personal effects, your improvements and you have to subscribe to a civil responsibility.
Improvements comprise the changes made to the standard layout. For example, a renovated kitchen, where the original laminate wood has been replaced by more expensive wood, is considered an insurable improvement. The civil responsibility is usually referred to as two million dollar coverage. Remember that these documents are required by, amongst others, the financial institution responsible of your mortgage loan. If you chose to rent your unit, it is equally important to make sure that your tenant is insured. By having insurance coverage, he protects the value of his personal effects and himself, for he will not have to pay for damages caused to a third party. Thus having a complementary insurance is a responsible and legally sound behavior and a great way to find a greater peace of mind. Lise