Condo Insurance, to Buy or Not to Buy?
October 30th, 2008It seems insurance is always one of those things that people try to find a reason not to buy.
This seems to be especially true when it comes to condos. The Buildings themselves all already insured by the Strata so there is no need for fire insurance etc. As a result people feel that it is not big deal. Well you may want to think again. Take a look at the following article regarding the aftermath of a small plane crash last year into the side of a Richmond, BC condo complex, the Rosario.
This is an extreme case of course, but you know what they say, if it can happen it will happen at some point. Just imagine you go away for the weekend and your washing machine for some reason leaks and there is water flowing for 8 hours before someone realizes what is going on. There will most likely be extensive water damage in your unit, but that is not all, what about all the units below you assuming you are not on the ground floor, or if you are on the ground floor, the units beside you. There will surely be damage to a number of them as well. In this case you are not covered by the building insurance, you are on your own. If your neighbors have insurance they will be covered but their insurance company will come after you for compensation. Now if you were insured you would not have to worry about any of this,your insurance company would handle it all for you.
There are countless other examples, but the important thing is, do not overlook this when you purchase a condo, you will be happy you did should a problem arise.
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