Importance of the Condominium Insurance policy
Condominium insurance is a fundamental form of protection for the collective assets of the owners, guaranteeing cover for damage to the building and its common facilities. When it comes to taking out insurance, many condominium owners opt to take out individual policies, without realising that this can cause more problems than solutions in the event of a claim. In this article, we will discuss the importance of a Condominium Insurance policy as opposed to Condominium Common Parts policies or the sum of the various condominium owners' policies.
Disadvantages in the event of a claim
When an accident occurs, such as a flood or fire, and the building is affected, having several policies in place can cause problems when it comes to settling the damage. Each insurer will have its own team of experts, who may have different understandings about the allocation of responsibility for the damage. In addition, the capital, coverage and deductibles of the various policies can be out of line with the risk that should be covered, and coordinating several insurers to speed up the repair of the building is quite complex. An example of this occurred with the “December Floods”, when many condominiums had problems coordinating several insurers to settle the damage.
Condominium policies cover very little Common parts
Condominium common parts policies generally have very limited coverage and do not cover damage that may occur in the condominium owners' flats. So, if damage occurs in a flat, the coverage of the Condominium Common Parts policy will not be enough to cover the cost of repairs. What's more, the coverage of the Condominium Common Parts policy is generally lower than that of the Condominium Insurance policy, which can lead to additional expenses in the event of a claim.
Conclusion
Therefore, it is important that condominium owners consider taking out a Condominium Insurance policy that adequately covers the building's needs. A single policy avoids problems when it comes to settling damages and guarantees broader and more effective coverage. It is essential that condominium owners find out more about the insurance options on the market from their broker and take out a policy that takes into account the building's needs.
Prevention is the best way to avoid future problems, and adequate insurance is a key element in protecting the collective assets of condominium owners.
Speak to your intermediary and make sure you have the right, up-to-date insurance.
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