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Old 02-01-2014, 05:15 PM   #33
CubicleGeek
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Join Date: Oct 2006
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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.
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.
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