Condo and Co-op Owners Save: Building Insurance Cuts Your Costs
This saving might not be as exciting as the day you bought your apartment but saving on building insurance still feels good.
If you used to buy home and contents insurance, you now need less because your building insurance covers part of it.
There is a useful dot point list of what is usually covered here but note this varies from one property to the next so you need to check what is covered by the insurance for your building and what you need to cover with your insurance.
You still need insurance – but less
Sadly some people don’t get that they need their own insurance in a condo or co-op. The building insurance will not cover all your stuff!
The building insurance usually covers the building itself and common areas, not the things inside your apartment.
Read and find
Get a good cup of coffee and read the insurance policy for your building. You are looking for what is covered and what isn’t.
Think of saving money on insurance and the idea of reading the policy will look better. Really!
A good test is to think about some of the things that could happen and see what is covered.
Stick to common things like water leaks, fire, smoke damage, problems with the lift motor, damage, injury and liability to other people’s property.
Then take another look at the building issuance policy, looking for situations that are not covered. That is what you need to cover in your insurance.
Here is a practical example. Say the piping in the roof of the building leaks and there is water damage in your apartment.
Does the building insurance extend into your apartment?
Obviously, if you think the building insurance should change you can discuss that with the building owners or your co-op corporation but that can take time to correct and you need to avoid leaving a gap in your insurance cover.
Prevention sure beats cure
As you think about the things that could go wrong, you are highly likely to see ways of preventing disaster.
It’s that moment when you think “We really need to secure the…”.
Go see the right people! Making your building safer and more secure for yourself and all the residents is much better than claiming on insurance and the building insurance premiums may fall over time if there are fewer claims.
If your building is well managed there should be procedures in place, here are some examples you can look for –
- Are the doors to common areas secure at all times?
- Are there any trip hazards?
- Are the electrical points in common areas safe?
- Is there a water stain on a wall and has the cause been addressed?
- Are the gutters and stormwater drains clear of debris? (Does anyone know??)
- Is there a risk management plan to hold down the legal liability risks for the property?
It’s not all about you
If you find issues to resolve, then that can be a way to get your neighbors interested.
Normally resolving building problems takes a lot more effort than finding them in the first place so be sure to try to get other residents involved.
Don’t guess
Even if you are working to prevent problems in your building, you will still need insurance and you may still have questions.
This is a time when the well-meaning neighbor might not be the best person to talk to.
If you’re not sure then ask someone who knows, such as an insurance broker. It’s worth it so you can avoid worry and sleep better at night.
Category: Insurance
