I've never had to exercise on it but with TD, my insurer, it is covered under "Loss Assessment" and is part of standard condo coverage. I did not know about it until the agent walked through everything I got as part of my coverage.
http://www.tdinsurance.com/products-...condo.jsp#loss
Quote:
Loss assessment
An important feature of a condominium insurance policy is loss assessment. This is when you share responsibility with others for common property. The insurer will pay, up to a stipulated limit, your portion of any special assessment that's valid under your condominium corporation's governing rules:
- If it's due to a direct loss that affects a shared part of the premises and if it has been caused by an insured peril
- If it's due to legal liability arising out of shared ownership of common areas of the condominium premises (for example - to compensate a visitor for injuries incurred by tripping over a frayed carpet in a corridor)
- Providing that the assessment has not been made necessary because of a deductible in the corporation's own insurance policy.
In most cases, the condominium corporations own insurance coverage will be adequate.
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I'm sure there are some cases that might not be insured, but it sounds like the only thing it won't cover is if your condo board decides ask for a one-time assessment to cover the deductible an a large claim. IIRC, our condo deductible was $100K and we had to exercise due to flooding this summer. We did not do a one-time assessment but raised condo fees to rebuild our reserve fund over a number of years. But it looks like if they went the route of one-time assessment to cover this deductible, I would not have been covered anyways.