HomeStars team member Shannon didn’t know what was happening. As she tried to work from her condo, the drilling and the grinding from the floor above was driving Shannon to distraction.
Just as she was thoroughly cursing her upstairs neighbours, there was a knock at the door. There was the property manager come to tell her a pipe had burst on the 7th floor, likely impacting Shannon’s 4th storey condo. As they surveyed the apartment, sure enough, there was water damage on the bathroom ceiling, and as Shannon noticed later, even over the doors of her neighbours’ places across the hall.
As if the grinding noises above weren’t annoying enough, Shannon’s domestic world was about to be disrupted a whole lot more. The long process of repairs involved sharing her condo with industrial size fans and dehumidifiers – as well as living with a sudden open door policy that saw workmen entering freely into her personal space. “Our homes just seemed to become a common area,” Shannon recalls, “especially closer to the evening.”
Fortunately for Shannon, the condo corporation’s insurance covered any damages. This isn’t always the case.
And sometimes, having someone else’s insurance covering the damage is a hassle itself, as someone else is making decisions about how to repair your home.
According to Darren Gradus, CEO of Canada’s Restoration Services, the number one thing most people are not aware of when it comes to condo insurance is what their liability is in regards to “common areas” in the condo building. It is important to understand what you are responsible for should damage occur, and what your insurance will cover.
Typically, explains Paisley Manor Insurance, the condo corporation is only responsible for property belonging to it, specifically:
- “Liability for Bodily Injury and Property Damage to others, arising out of the corporation’s activities as a Condominium. This coverage protects Individual Unit Owners but only with respect to their interests in the common elements of the Condominium.”
- “Boiler and Machinery coverage if required by the Condominium Corporation.”
- “The physical Units, as originally constructed, excluding any upgrades or improvements made or acquired by the Unit Owners.”
Darren also suggests updating policies to reflect any recent renovations, such as installing expensive hardwood flooring, for example. “Condo owners that choose not to have their own home insurance and rely only on the condominium’s insurance,” explains Darren,”will not be covered for their own contents if damaged by a flood.”
A team member of Rainbow International of North York suggest owners,
“have comprehensive insurance policies preferably with the same insurance carrier as the Condominium Corporation. This policy requires high enough limits to cover the full replacement value of floor coverings…Condominium Corporations are removing flooring from the standard unit description in order to bring down premiums and reduce claims. This is not beneficial to the unit owner, each has to buy a more comprehensive policy to have flooring restored.”
According to Paisley Manor Insurance, condo unit owners are responsible for insuring all personal belongings, including:
- Furniture, clothes and other personal property stored both in the condo and in any storage facilities on site.
- “Personal Liability – Legal Liability arising out of your personal activities as a Unit Owner and the ownership of your Individual Unit.”
- “You may be responsible for the “deductible” under the Corporation’s Insurance Policy if a loss occurs to any property the corporation is responsible for insuring. This charge back of the corporation’s deductible would apply if the damages were a result of an act or omission on the part of the Unit
Owner.”
The aftermath of a flood in a condo building is a complicated affair. “There are several parties involved,” explains Darren, “more than one insurance company, the property management, the owner, <and> several restoration companies. This can cause delays in solving the problems and restoration.”
With so many people involved, decision making can be a challenge. Condo owners need to establish who is making the decision – “is it the owners or the property managers?”, asks Darren. The other major issue Darren commonly sees is the speed at which adjusters from both insurance companies can agree on responsibilities – which greatly impacts the speed at which your condo will be repaired.
Canada’s Restoration Services suggests taking the following steps should a leak occur in your condo:
- Identify the source, and if safety allows, try and stop it;
- Contact a certified IICRC water damage restoration company/or your property management;
- Remove any personal belongings that are at risk of being damaged;
- Take as many pictures as possible;
- If the damage is not the result of a sewage problem, create an in air flow with a fan and turn on any available dehumidifiers.
Once the the restoration company arrives, you should:
- Ask them what the scope is and how much will it cost – and then consult with your insurance broker;
- Make sure the company is using tools and instruments to determine what was damaged and what needs to be done;
- If you decide to involve your insurance company, try to have the adjuster out at the property sooner rather than later.
And before any such fate befalls you, check to make sure your insurance covers accidents such as floods or burst pipes. Many insurance policies do not cover damage caused by flooding, or from frozen pipes that burst outside of your home. “Find out if emergency water restoration services to floor coverings, improvements and personal contents are covered by the proposed owners insurance policy,” explains Marsha, “not all policies offer the same coverage.”
You might even consider programs such as Marsha’s Condominium Advance Restoration and Emergency System, that aims to “track of all documentation, notes, rules, by-laws, declarations and all contacts that were involved in the loss. The authorization forms act as a rule book to follow.”
Being responsible also means checking the washing machine and toilet valves, reminds Darren. And if you are leaving on a long vacation, consider notifying the property manager.
