Article from Volume 2, Issue Number 2, 2021

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Condo Water Leaks: What You Need to Know

By unknown | Other articles by unknown | Regular Column

Water can deliver serious damage almost anywhere, even up on the top floors of a condominium building. “Clients may think they are above the deluge, but the smart broker knows better."

Roof leaks, plumbing problems, an overflowing bathtub, leaky dishwasher or a fire that sets off the sprinkler system: all mean bad news and condo owners need to arm themselves with more than an umbrella. Condo owners may think they are protected by their condo corporation, but many are unaware where their responsibility starts and the corporation’s ends.

The newsletter notes this advice from insurance broker to client: make sure you know and understand your condo corporation’s insurance coverage. Challenge your corporation, if necessary, to make sure there is adequate protection from water damage.

Condo owners might consider having a brief check list to review with the condo corporation. The newsletter suggests checking to ensure there is:

• Regular maintenance and inspection of plumbing lines and systems;
• Regular inspection of exterior walls, roofs, balconies and parking structures to detect any deterioration and head off costly repairs with preventative maintenance.
•  Regular inspection of mechanical equipment, including sprinkler systems. Other points that your insurance broker may wish to review with you when considering coverage for water damage:
• Where will the unit owner live during the time when water damage is being repaired and who pays for those costs?
• Are the contents of an owner’s unit properly insured?
• Are the improvements or additions that a unit owner makes to his/ her condo listed and covered? The condo corporation’s coverage is based on a “standard unit” and the amenities listed in that unit. Extra or more expensive flooring, moulding, cabinetry, appliances, lighting fixtures, carpeting should be adequately insured by the unit owner.

The article concludes by suggesting that insurance brokers make sure there are no leaks in their clients’ coverage.

Good advice for Owners, too.

(Excerpt from the Canadian Insurance Top Broker newsletter)