Quote:
Originally Posted by fundmark19
Your insurance doesn't cover damages to the pipes unless you caused it for liability sake. When you have insurance in a condo environment you are paying for everything outside of the walls and liability. If a pipe burst within your wall and it's not directly your fault condo corp pays. You want to have your insurance in place to take care of your personal items damaged and if you need to vacate the property. In a rental that would be your appliances mostly. You want to make sure your tenants have insurance as well in case something happens your insurance can subrogate against their policy and it is their fault inside of your unit.
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Let me tell you a story of something that happened to me in the past.
I buy condo, condo corp insurance policy has $10k deductible. Condo corp changes deductible to $30k without mentioning it to me or sending out a new certificate. I have insurance with a $20k limit.
A few weeks later, my tenants leave their window open winter, because they're idiots. Pipe bursts, floods my unit and 3 units below. Damage is over the condo corp deductible, their insurance pays everything except the $30k deductible. My insurance pays the $20k limit. My tenants leave town in the middle of the night, never to be heard from again. Now, I have a copy of the tenants insurance policy I insist my tenants buy, but the adjuster informs me that without serving the tenants they can't collect from the policy as the insurer has declined to just pay. I pay the $10k difference, plus my deductible ($1000).
4 years later the insurance company finds the tenants somehow, serves them, and settles with their insurance company. So I got the $10k back eventually, but I had mentally written it off by then, and had actually sold the condo.
I do not wish to have this happen again. My strong preference is to have my limit completely cover the condo corp's deductible.