UNIT OWNER VERSUS CONDO ASSOCIATION COVERAGE

Certainly one of the more important and confusing areas for everyone involved. As we saw earlier the Condo Association is responsible for certain coverages though leaves off at particular points. As an owner of a unit you will want to make sure that your policy picks up where the association leaves off. The Condo Act as well as the Association’s Declarations & Bylaws are a great place to start, as the Board of Directors may have elected to cover more than what is legally required. This would be good to know before you double insure your condo and pay for coverage you could never use.   

This is what the Association typically covers:

• The Building structure from the foundation up;
• The units up to the unfinished surface of the drywall (most carriers will prime it).
• Permanent fixtures and built in appliances. This includes, developer installed; cabinets and bathroom fixtures, HVAC equipment, plumbing and electrical systems.
• Limited Common Elements; Windows and doors (exterior and interior) and would include balconies or decks attached to the structure. (Unless the associations operating agreement states otherwise).

This usually leaves for you as a Condo Owner:

• Wall coverings ­­­ decorative finishing on the walls and ceiling
• Floor coverings ­­­ carpet, tile, or wood.
• Any upgrade to the unit of fixtures or limited common elements
• Personal Property in the unit and stored elsewhere on the Association’s common elements (regardless of the circumstance or origin of loss).

Betterments and Improvements

So you bought this beautiful condo in the perfect neighborhood and wanted to upgrade your kitchen to meet your standards. Certainly you find it better now that you improved it, this would be a “betterment or improvement”. These items are usually covered by the association only when original, which means you will need to make sure that your personal policy covers the upgrades. What if they were original to you when you moved in but not to the association when built? Good question, glad you asked! Not covered by the Association but can be added to your personal policy.

The Condo Act defines Betterments and Improvements as all “decorating, fixtures, and furnishings installed or added to and located within the boundaries of the unit, including electrical fixtures, appliances, air conditioning and heating equipment, water heaters, or built in cabinets installed by the unit owner.”