In order to determine what the “complete replacement value” of the property could be, it is necessary to use the services of a serious insurance expert and to have an assessment carried out. Many statements contain a provision specifying the frequency of evaluations. In the event of damage, the water appears to be clogged and many managers, boards of directors and homeowners have difficulty understanding who will respond to the insurance and who will pay the deductible. The easiest way to remember how insurance works in a condo is that there are here five main issue agents and brokers need to be aware when condo clients advise. There are certain advertising obligations when a company adopts or changes the standard description of the insurance unit. For example: If water escapes or invades a unit, the first obvious action is to locate the cause and cut off the water or have the problem repaired. The administrator will then ensure that a serious contractor visits the unit to extract surface water and take all necessary measures to avoid contamination of the area by grey water or mold. The manager will work with the company, owner, service providers and insurance provider to ensure the device is restored as quickly as possible. Under the Condo Act, Condo Corp is only required to ensure up to the “standard unit” that the “standard unit” is defined either in the co-ownership by-law or, in the absence of statutes, only the property that constitutes a “standard unit for each single class,” as defined by the condo chamber at the turnover meeting when the condominium and board of directors are created. Many condo declarations provide that the company retains an insurance agent. The main purpose of this provision is to protect the interests of mortgage lenders and homeowners. In the case of a high debt (usually more than $25,000), the cheque is given to the insurance agent to prevent the funds from being deposited into the company`s bank account, where it can be used for other purposes at the discretion of the board of directors, instead of repairing damage or worse, which becomes a temptation to defraud.
If you change your insurance coverage (for example. (b) the amount of the deduction, the replacement value of the coverage or the supplement of eligible exclusions), a business must provide the owners, within thirty days of receipt of the insurance certificate, with a written notification of the change and a copy of the insurance certificate reflecting the change. Advice for condominiums: Condominium companies may maintain insurance on units and/or commons against additional risks that are not prescribed by law. Expert with your insurance agent and/or lawyer to determine the insurance coverage that suits you. For example, there is water damage in a dwelling house that comes from a homeowner unit. The condo company can only make the owner liable for the deduction limit of up to $50,000. If the deductible is $15,000, the owner is responsible for $15,000. But if the deductible is $75,000, the owner is only responsible for $50,000 (the maximum amount).
With the ever-increasing popularity of condominium investment and development, it is becoming increasingly common for investors, stakeholders, developers and others to buy condominium “blocks” to generate rental income or return on investment.