By: Mary Morden, Property Manager, Waterloo Region
From the WB Condo Connection, Volume 8, Issue 1
The Condominium Act, 1998, Section 99 (1), states: “The Corporation shall obtain and maintain insurance, on its own behalf and on behalf of the owners, for damage to the units and common elements that is caused by major perils or the other perils that the declaration or the bylaws specify.”
How much insurance coverage is enough?
But how much insurance coverage is enough? Enter the Insurance Evaluation; this handy little device takes the guess work out of the hands of Board of Directors and places it where it belongs, firmly in the hands of the appraisal experts.
When contact is made with the selected appraisal company they may require site plans and inspections to ensure the accuracy of their report.
Once the report is issued by your appraiser it should be forwarded to your insurance adjuster who will review and determine if you have adequate coverage or if the policy needs to be increased to allow for the new appraisal amounts. One such case at a Guelph condominium recently led to a decrease in the policy premium of almost $5,000.00 per year. The savings alone paid for the appraisal three times over, and depending on the appraisal company you select, many offer free updates for the next several years, making this program even more attractive to Board members.
An accurate appraisal of Corporation assets is no longer a luxury, it is an essential step in ensuring that you are adequately insured in case of disaster. As a Board member, you have a duty to the Ownership to ensure you acquire adequate coverage for the Corporation.
The time to think of your insurance coverage is now, not after a disaster.