So you have just spent a significant portion of your life savings purchasing one of the many condos in Montreal, and now you’re excited to decorate your new place and make it your own.
But naturally, you want to safeguard your biggest investment, right? Here are important questions to ask before you buy condo insurance.
What will my insurance policy cover?
Usually, condo insurance policies cover contents, walls and floors, and fixtures. Some policies also include liability which protects the property owner against lawsuits.
“Contents” refer to your personal property. Clothing, furniture, appliances, and electronics. They are insured from fire, theft, explosion, water damage, etc. and the coverage amount is completely up to you. Note that jewelry and computers/phones/iPads are not covered, but you can buy extra insurance for these items too.
Walls and floors
The insurance will cover the surfaces of your walls and floors, the fixtures in the kitchen and bathroom, and everything that is already built-in. It also covers renovation work if these things ever get damaged.
This provides coverage for body injuries that visitors or neighbors may incur, like tripping over a rug, or any other damage caused to them or their property within your vicinity. According to insurance companies, this is one of the most common claims they have processed, so this kind of coverage is absolutely important.
How much does condo insurance cost?
A basic insurance policy coverage is very small, so you should make sure that the bigger your condo is, the higher your insurance policy value should be, since you may end up spending your own money if something happens. Make sure to ask about the different insurance policies, and shop around so you can compare them and get the best deal out there.
Does my building have special insurance requirements?
Before contacting different insurance companies, get in touch with your building management first. Usually, and understandably, condos would want you to have a proper insurance coverage since they want to do as little as possible with any damage or incidents that may occur in your residence.
How big should my deductible be?
Deductibles are the amount you must pay before the insurance policy kicks in. It is highly recommended that you take the highest amount of deductible as possible.
Will my insurance pay for temporary housing if something happens to my condo?
Be sure to ask the insurance company whether they are going to pay for your temporary housing should you experience water damage, fire, etc.. Insurance policies vary, so make it a point to know what you should expect regarding these things.
Will my insurance company reimburse me for assessments?
Most insurance policies for condos cover assessments for bodily harm or damage inflicted within the building premises, but the building’s own insurance coverage should be exhausted first. Again, policies vary, so be sure to ask your insurance agent about this.