What does the Condominium Corporation Policy Cover?

Sherry Bignell, CIP, CAIB

Commercial Acct Exec

BKI Risk Management

A condominium operates different than a single detached dwelling. There is undivided ownership interest by a corporation a certain property, defined at the condominium’s creation. In principle, the condominium is the whole collection of individual units along with the land upon which they sit. When you buy a condominium unit, you acquire title to a space that is bounded by walls, floors and ceilings.

The insurance obtained by the Condominium Corporation is required to cover all of the insurable common property, all insurable property of the Corporation both real and personal, all of the units and in most cases the improvement and betterment of which the board has knowledge.

What does this mean?

The standard Corporation insurance policy covers all interior and exterior and all common property. This includes ceilings, walls and floors within your unit, subject to the definitions, exclusions and deductible in the policy.

BKI is hiring!

BKI has a work hard, play hard culture.

We are currently seeking an enthusiastic – Junior Customer Service Representative to assist with the day to day handling of large commercial book of business.

If you're looking for a new career challenge and the opportunity to work in a positive environment and career growth, please email us your qualifications!

• Must have Level 1 Insurance License
• Proven interpersonal skills along with solid organization abilities
• Previous experience with The Agency Manager system and previous commercial experience as asset
• Positive Attitude

Job Description

Collect client information and prepare marketing proposals

• Work with clients to gather information requirements as per marketing proposal and specific underwriting requirements
• Summarize marketing results for Account Executive to review
• Issue documentation and review insurer's wordings, making comparisons' that all coverage included
• Follow up with underwriters for outstanding endorsements, documents, information
• Check and process all mail including renewals, mid-term endorsements etc.
• Update client information including: Drivers list, Vehicle fleet schedules, Statement of Values, Equipment list etc.
• Issuance of certificates of insurance, renewal letters, pink cards and other correspondence as required
• Working with Accounting to investigate account discrepancies and make corrections as required

Email: resumes@bki.ca

Confidential Fax: (403) 230-4672

The Hidden Risk of Buying a Condo with Low Condo Fees

Sherry Bignell, CIP, CAIB

Commercial Acct Exec

BKI Risk Management                 

What are condo fees?

They consist of costs incurred by owners to maintain, operate and administer the property.

Fees may include costs for:

• Maintenance and upkeep of the common property, such as snow removal, landscaping, cleaning of common elements including exterior windows, mechanical maintenance, carpets, building repair & maintenance, elevator maintenance & repairs.
• Contributions to the reserve fund, which is used to pay for future major repairs and replacement of common building systems to ensure the property is kept in good repair over the life of the property.
• Property management fees.
• Salaries of condominium employees, such as concierge, security guards, superintendant.
• Utilities.
• Corporation’s Insurance Policies.
• Cable and/or Internet access (if applicable)
• Amenities (pool, recreation facilities, party room).

If there is a large loss, such as a fire in a condo, and owner’s are unable to stay in their units because of the damage, or because of repairs being done, they will have to continue paying their mortgage and condo fees.

Did you know that Intact Insurance provides maintenance fees coverage that will pay your condo fees for the “reasonable time required to repair or rebuild your dwelling or if you permanently relocate, the reasonable time required for your household to settle elsewhere”.

Are you thinking about buying a condo?  Buyer beware – do your homework!  Does the property you’re looking at offer low condo fees?  Before buying a condo, hire a condominium document review specialist.  They investigate the relationship between the financial and physical aspects of the prospective property and determine how it will affect you.  They will review the condominium by-laws, annual budget and condominium fee schedule, current financial statements, audited financial statement, most recent annual general meetings + 12 months of board meeting minutes, insurance certificate, any applicable leases, reserve fund study, any legal actions or judgments made against the corporation, and any other relevant documentation to the property you’re looking at purchasing.

Special assessments are occurring more frequently.  There have been a number of properties in the media recently because of building deficiencies, or allegations of faulty workmanship, and owners being assessed large amounts to repair or replace the deficiencies.

Having a condominium document review prior to purchasing will give you insight on whether or not there may be a special assessment in the near future, as well as other pertinent information.

Do your homework before purchasing a condo.  Document checks, as well, if you are looking at a newer property, do a background check on the developer.

Special assessment coverage is found on every unit owner’s policy, however, it provides coverage, up to the limit provided on the policy, subject to the deductible and subject to the assessment being valid according to the by-laws, and the reason for the assessment is due to a direct loss to the common property by an insured peril under the policy.  Special assessment coverage does not respond when the reason for it is due to building defects, or faulty workmanship, as these are not perils that are covered under an insurance policy.

Reference articles:
Bella Vista Condos by Seven’s Seven Corporation
http://bit.ly/qfGEam

Faulty towers: The hidden dangers of low condo maintenance fees
http://bit.ly/lKxsWN