Insurance for Your Strata Lot:

When you are renting your condo or townhouse in a strata corporation, do you need insurance?  Yes. 

When a property is located in a strata corporation and is rented there should be three insurance policies involved. The strata corporation, owners and tenants should all have insurance. The strata corporation will have insurance for the building and for original furnishings of the unit which they are required to insure. A strata must ensure the items inside the strata lot but only above the strata corporations deductible amount. If there is damage to your unit from outside the unit and the costs are below the deductible then the cost of repairs falls on the owner. This includes the walls, ceilings, flooring and appliances in the unit. When damage is below the deductible this is where the owner’s insurance policy would be engaged. If the roof leaks causing damage to your unit that is below the deductible amount, the strata would be responsible for repairing the roof, not the inside of your unit. An owner could repair this on their own or engage their insurance policy to have the issue repaired. We compare this to the rock hitting your windshield on the road. You know it came from the truck driving the other way, but your car insurance pays to repair your windshield. 

Tenants insurance would cover items including their belongings inside the unit in the event of damage to the unit.

All three policies strata, owner and tenants insurance can include costs to relocate the resident in the event the unit is uninhabitable after a flood or fire. 

Owner and Tenant insurance also can include coverage to pay the strata deductibles in the event damage to other strata lots or common property originates from your unit. We recommend you bring the strata deductibles page to your insurance provider to ensure they can provide the proper coverage needed. If you don’t have a copy of your deductibles contact your strata company and request a copy. It is provided each year in the AGM package and when the insurance is renewed. When your strata policy is renewed you should review it to see if the deductibles have changed from the previous year and if they have, review this with your insurance provider to ensure you’re covered at the new levels.

Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com