Many policyholders don’t understand their condo insurance – IBC

Many policyholders don’t understand their condo insurance – IBC | Insurance Business Canada

Many policyholders don’t understand their condo insurance – IBC

A survey commissioned by the Insurance Bureau of Canada (IBC) that gauges how well condominium unit owners in Quebec understand their insurance found that more work needs to be done when it comes to raising consumer awareness.

One of the most striking findings of the survey is that one out of five co-owners in Quebec – 19% of the survey’s respondents – said that they did not know that two insurance policies cover condos, namely the unit co-owner’s own condo insurance and the condo syndicate’s mandatory insurance cover.

The survey also found that 50% of co-owners did not know the amount of their syndicate’s insurance deductible. This amount is something co-owners might be required to pay pro-rated to their share in case of a loss.

Other findings of the report include:

  • Only 14% of co-owners knew about the syndicate's options for paying its policy deductible in case of loss.
  • One in three co-owners did not have coverage for water damage (or did not know whether they had), although it is the leading cause of home insurance claims.
  • 40% of co-owners did not know much about, or barely understood, their Declaration of Co-Ownership.

The limited understanding of condo co-owners is an issue the IBC hopes to resolve.

"We know it's a complex subject that may not be top of the list when looking for one's future home. Too many consumers call us with questions after they suffer a loss," said IBC Insurance Information Centre supervisor Line Crevier.

IBC has launched online resources for co-owners to help them understand their rights and obligations, as well as those of syndicates.

"With the recent amendments, it is now more important than ever for co-owners to take an interest in how their co-ownership is managed and know their exposure in case of a loss,” added Crevier.