Non-Occupant Rental Insurance Mandatory or not?

[mightygodam]

Hello

I'm getting conflicting answers in my entourage about this whether non-occupant condo owner insurance is mandatory or not...assuming we dont care about the value of the non common space.

We own a condo downtown with a permanent (non AirBNB) year-long tenant in it. The small condo board (4 units total only) does subscribe to an insurance plan and I have had one as a non-occupant condo owner for the past 7 years.

Renewal is coming up and every year I wonder if my portion is mandatory or not assuming the value of the content inside the condo is practically nil at this point (we are due for some major renovations to replace everything from flooring to cabinets)

Scotia has not requested any insurance documentation for any of the past 7 years and when I call, they stress on recommending we subscribe but never are we being told it is mandatory.

Does anyone here know?

 

[pinetowntree]

@mightygodam If you have a mortgage, you will need insurance as the mortgagee will need to be listed.

Your condo corp will have insurance, but it will not cover everything. Yes, you need insurance. And you should get your tenant to have insurance as well because YOUR insurance generally will not cover THEIR belongings.

 

[sovereignone]

@mightygodam

assuming we dont care about the value of the non common space.

Just because you don't care doesn't mean it's not applicable.

A condo policy includes coverage for a loss assessment, if there's damage to a shared space or common area or potentially even if there's liability arising out of injury occurring in a common area. With this cover, if you get hit with a portion of this claim based on your share of the condo, your insurance will cover you up to a stated limit. Without it, you pay out of pocket.

(we are due for some major renovations to replace everything from flooring to cabinets)

Your policy would cover this, as well. In the event of claim, the master policy will basically rebuild the building and units to the definition of a standard (ie; basic) unit. You would be responsible for paying for any improvements or betterments you've carried out.

Also, where it is rented out you'd be entitled to lost rental income if there is a claim and you can't rent it out for some time (during the repair/rebuild.)

 

[jesusislord007]

@mightygodam Your risk as a condo owner is primarily not your contents.

It is (in not particular order):

• damage to the unit if the damage is less than the condo Corp's deductible
• damage to common property if your unit is responsible in th above scenario, or your share of damage as an owner.
• damage to your neighbor's units in the above scenario if your negligence contributes to the loss
• the condo Corp's insurance deductible if a claim is made under that policy
• damage to any unit improvements/upgrades that the condo Corp's policy will not cover (most likely all of them)
• any other scenario where you could be held liable for compensatory damages through your ownership of the property (no the insurance at your residence does not cover this)
• appliances as these are considered contents and not fixtures

That's about all I can think of and some of this may be slightly different in your province than mine since Condo corps are governed by provincial statute. The above is accurate for BC.