You can add additional coverage, or endorsements, for certain perils not automatically included in your basic condo insurance. The most popular are for sewer back-up and water damage.

For co-owners, damage caused by sewer back-up or water leaking into the building could well damage their property or improvements made to their unit. It would be wise to add this additional coverage to your home insurance.

Loss assessment coverage

As a co-owner, it is recommended you have coverage for perils to which you are exposed in case the syndicate imposes a special assessment.

For example, if your condo is on a higher floor, you are exposed to a special assessment for sewer back-up. You must therefore have this coverage so that your insurer can indemnify you for this special assessment.

Additional coverage can also come in handy if your co-ownership syndicate does not have enough insurance for the building. This is called insufficient insurance.

If the common portions suffer damage, and if the insurance purchased by your co-ownership syndicate is not sufficient to pay for the repairs, all the co-owners will have to pay a share of the special assessment. You will have to pay the share of the repairs imposed yourself, if you do not have the coverage required to pay for the damage suffered by the syndicate.   

Declaration of co-ownership and additional coverage

In a number of cases, the Declaration of co-ownership imposes coverage (for example, pre-determined amount in civil liability, sewer back-up endorsement, etc.)

Make sure you read it thoroughly to find out what your obligations and those of the syndicate are when it comes to insurance. 

Principal endorsements

Whether your condo unit is at risk of suffering certain damage or not, it is wise to consider certain coverage that may protect you if the syndicate bills you for the cost of the damage suffered by the building.

Because water damage is the leading cause of home insurance claims, the following coverage should be considered: 

Water damage endorsement:  Groundwater and sewers

This endorsement covers damage caused by groundwater, including: 

  • Discharge, backup or overflow from French drains or sewers; 
  • Ground or surface water that enters or leaks into the building. 
     

Water damage endorsement:  Groundwater, sewers and overflow of a body of water

This endorsement covers damage caused by groundwater and overflow of a body of water, including:

  • Rising or overflow of a body of water;
  • Discharge, backup or overflow from French drains or sewers; 
  • Ground or surface water that enters or leaks into the building. 
     

Water damage endorsement – Above groundwater

This endorsement covers damage caused by above groundwater, including:

  • Discharge, backup or overflow of water from eaves, downspouts, rainwater gutters or roof drains.  
  • Rain, snow or melting snow that enters through the roofs, walls of the building, or from windows and doors. 
     

Other endorsements

You may also want to consider other endorsements, depending on your condo’s features and its risk exposure.  Do not hesitate to contact your insurance agent or broker for more details

Did you know? (home)

Do co-owners need home insurance?

You may well ask if co-owners need home insurance, since the condo corporation already has an insurance policy.

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