June 17, 2024

Understanding Strata and Condo Insurance

Strata insurance, or condo association insurance, protects shared properties and assets within a strata scheme. This coverage primarily addresses the needs of buildings and common areas as specified in the strata plan, including any original fixtures installed by the developer.

Critical Aspects of Strata Coverage:

  • Property Insurance: Safeguards the building envelope, common property, and equipment from perils such as lightning, fire, hail, and vandalism.
  • Liability Insurance: Offers protection against third-party claims of bodily injury or property damage that occur on the premises.
  • Optional Coverages: These can include earthquake insurance, appliance breakdown, errors & omissions insurance, among others.

Exclusions and limitations Strata insurance policies come with exclusions and limitations, please speak with your Waypoint broker to identify these items and discuss if optional coverage is available.

Inadequate strata insurance can impose significant financial burdens on unit owners, particularly in the event of damage to common areas or the building’s structural components. Maintaining comprehensive strata insurance is vital.

Conversely, condo insurance focuses on an individual unit’s interior space and possessions, providing a distinct layer of protection that complements strata insurance. It covers personal property, additional living expenses, personal liability, loss assessment coverage for deductible, strata building, liability and any improvements made by the unit owner.

Like strata insurance, condo coverage has exclusions and limitations, please speak with your Waypoint broker to identify these areas.

Both strata and condo insurance play crucial roles in protecting your investment in shared and personal property spaces. These policies cover significant financial risks and offer peace of mind in the face of unexpected events. It is essential for property owners to thoroughly understand their coverage options and ensure they are adequately protected to avoid unforeseen financial hardships. To learn more about strata and condo coverage, fill out the form below or call 1-866-674-2816 ext. 846 for new business and ext. 847 for existing policies and one of our trusted brokers will contact you

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