Condo insurance: the deductible time bomb

Condo owners are insured twice — by the corporation's master policy for the building and common elements, and by their own unit policy — and the gap between them has become expensive.

The loss-assessment risk

When a major loss exceeds the corporation's coverage, or the corporation's deductible is huge, owners can be assessed their share of the shortfall. Corporation deductibles have climbed into the $50,000–$250,000 range in many buildings. Loss-assessment coverage on your unit policy protects you from that bill — and many owners don't have enough of it.

Deductible chargebacks

If a loss originates in your unit (an overflowing tub), the corporation may charge you its large deductible. Coverage exists for this — check that you have it.

Unit improvements and betterments

Upgrades you made may not be covered by the master policy. Unit-improvement coverage fills that gap.

Contents and liability

These work like any home policy — don't leave the contents limit at a low default.

Action

Read your corporation's master-policy summary, find its deductible, and set your loss-assessment and unit-improvement coverage against it.