A little about Insurance!
I couldn’t have wished for a better special guest for my first real estate webinar! Elyshia Cheung from CRS Merrill filled the bill wonderfully, and left me with some interesting tidbits to share with my readers.
For condo owners:
Standard Insurable Unit Description (SIUD) – this is a description of what an insurance policy will cover if there is a fire or a flood and includes the type of drywall, paint, cabinets, and flooring. If there is a fire or flood, the owner’s insurance is responsible to cover anything over and above what the board has determined is standard for the unit. This is very important for anyone who has done updates to their apartment or townhouse. Keep receipts, take photos – document your updates!
An owner can be assessed the condo corporation’s deductible if the owner caused an issue (flooding from a dishwasher for example) and it impacted other units. The owner in turn would claim the deductible through their own insurance.
Special assessment coverage – did you know your insurance will only cover a special assessment if the assessment is being used to cover things that the insurance would normally cover, such as hail? The special assessment coverage does not help if the condo corporation has not budgeted properly and needs money to cover operating costs.
For detached home owners:
The insurance industry feels a house is “old” at 25 years. That means the insurance company will be asking if the plumbing, electrical, furnace etc have been updated. Some houses change hands a few times during that 25 years so it can be difficult to pinpoint when updates were done, but it’s good to have a conversation with your insurance agent if you have done updates, to see if there is an impact to your policy.
A comprehensive homeowner’s policy covers everything but the exclusions that are listed, such as sewer back-up, flooding, etc. There are maximum amounts they pay out for things like theft or mysterious disappearance. If you need additional coverage, you must add that coverage back in. So don’t assume you are covered – ask questions! If you have expensive bikes or cameras, make sure you are covered for the value of each item.
For tenants and condo owners:
Having tenant insurance (which is covering your stuff along with general liability) is a great way to build history with an insurance company, so that when you make the move to a detached house (which will cost more to insure) you can save on the premiums!
CRS Merrill Insurance
#15 - 5080 12A Street SE
Calgary, Alberta T2G 5K9