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Coverage of Water Damage

On the beginning, there is one kind of water damage in the insurance policy. It is a sewer backup. Now there is two more new coverage about water.

Here is a sample from Optimumwest insurance company.


Sewer Backup

Water (Excluding flood water) entering the home from:

  • Sewer or sump system
  • Septic tank
  • Outside drain
  • Eavestroughs or downspouts

Overland Water

  • Flood caused by overflow of body of freshwater
  • Surface water buildup caused by weather including heavy rainstorm

Ground Water

  • Ground water or rising of water table

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How to read your condo insurance policy

First of all, the building is covered by your Strata insurance policy. So, no need to worry too much about your building, including structure, roof, wall, etc.
But the others are not covered by your strata insurance policy. That is why you need buy your own unit insurance policy, or condo insurance.
There are some key coverage you need to ask your agent or read your policy by yourself.
Dwelling Improvements, Alterations, and Additions
Condominium owners are covered for accidental damage to improvements you make in your unit for which your strata’s policy does not provide coverage, subject to your condo insurance policy limits. For example, you changed your shower in your washroom. It will be covered by your own condo insurance policy.
Loss assessment
Condominium owners will also receive up to $1,500 for assessments arising from covered damage. This can be used to pay for your share of property damage or injury awards for which your strata’s policy does not provide coverage. Typically, up to $50,000 is available, but this may vary depending on your policy.
The limit $1,500 is just an example. I know some policy has high limit, like $15,000 limit.
This one is very important. Say when some thing happen on your strata building, and it is covered by your strata policy, but the limit is not enough or the deductible is so high, your strata can not afford it. Then, after a Special General Meeting, a special loss assessment will be arranged for every unit. As an unit owner, you have to take your own share of it. Because your condo insurance provide this loss assessment coverage, you can survive in this financial situation.

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