Condo insurance can offer peace of mind for owners who want to protect their investment and belongings from unexpected events. However, it’s important for owners to understand insurance deductibles and how they work.

What Are Insurance Deductibles?

Deductibles are the amount of money that insurance policyholders must pay before their insurance company will release funds to cover a claim. The deductible amount is specified in the insurance policy and can vary depending on the policy and coverage.

For example, if an owner has a $1,000 deductible and makes a claim for $5,000 in damages, they would pay the first $1,000 and the insurance company would cover the remaining $4,000.

Who Is Responsible for Paying Deductibles?

In most cases, owners are responsible for paying their own deductibles when making a claim. However, there are certain situations where an owner may not be responsible for paying their deductible.

If an owner or their guest causes damage to their unit, they will be responsible for paying their deductible. However, if damage occurs to common elements of the condo, the corporation’s insurance policy will typically cover the cost of repairs.

In some cases, the corporation’s insurance policy may have a deductible that must be paid before the insurance company will cover the cost of repairs. If this is the case, the corporation may pass on the cost of the deductible to the owner responsible for the damage.

It’s important for owners to review their condo corporation’s insurance policy to understand the circumstances under which they may be responsible for paying a deductible.

What Should Owners Do if They Are Responsible for Paying a Deductible?

If an owner is responsible for paying a deductible, they should contact their insurance company as soon as possible to report the claim. The insurance company will assess the damage and determine the amount of the deductible.

Owners should also take steps to mitigate further damage and prevent any potential safety hazards. For example, if there is water damage, owners should turn off the water supply to prevent further damage and potential flooding.

If an owner is unsure about their insurance coverage or responsibilities, they should speak to an insurance broker or agent for guidance. They may need to purchase additional coverage to protect themselves in situations where they are responsible for paying the corporation’s deductible.

Understanding insurance deductibles is an important part of owning a condo. Owners should review their insurance policies and their condo corporation’s insurance policy to understand their responsibilities and potential costs in the event of a claim. By being prepared and informed, owners can protect their investment and have peace of mind knowing they are covered in the event of the unexpected.