There are differences between the insurance Chaparral Estates has purchased to insure the buildings and the insurance you are responsible for to insure your contents. Things that you are responsible for are …. Imagine you take your unit, flip it upside down and shake. Anything that falls out would be your responsibility to insure.
Here is some information that you should be discussing with your insurance agent…..
YOUR PERSONAL PROPERTY
Your personal property such as furniture, electronics, clothing and even your appliances are not covered under the Chaparral Estates’ Master Insurance policy. You need to purchase a separate condo insurance policy to cover these assets. Taking the time to prepare an inventory of your possessions and purchasing the appropriate coverage can prove invaluable in the event of a large loss.
YOUR PERSONAL LIABILITY
If someone slips on a wet floor in the bathroom in your unit and suffers injury, any claims brought against you would not be covered by the Chaparral Estates’ Master Insurance policy. In fact any claims brought against you personally or a resident family member for bodily injury or property damage would be your own responsibility. Therefore, personal liability insurance is essential to ensure that you are in a position to pay for any resulting settlements, or even for the court costs to defend yourself against an unjustified claim. The current recommended coverage is 2 million.
LOSS, UNIT and DEDUCTIBLE ASSESSMENTS
Chaparral Estates has insurance for all buildings within the complex, including common areas, through a Master Insurance policy. Because the common areas of Chaparral Estates (sidewalks, roadways, green space, etc.) are available for the shared use by all unit owners, there is a shared responsibility amongst all owners when a claim is made against Chaparral Estates’ Master Insurance policy. How does this shared responsibility work in the context of insurance?
Scenario One: A visitor slips on Chaparral Estates’ roadway/sidewalk because the snow and ice have not been cleared. The visitor bangs his head, is seriously injured and unable to work. If Chaparral Estates is sued, their liability insurance will cover their legal costs and any possible judgment against them. However, if the financial value of the claim is very large and Chaparral Estates is underinsured for the amount of the judgment, each unit owner is now assessed to cover the shortfall. Currently (as of 2016) Chaparral Estates is covered for $5,000,000.00 in liability insurance.
Scenario Two: Some condo corporations purchase Master Insurance policies that have a very high deductible (i.e. $100,000), for property claims. Again, each unit owner can be assessed to pay a portion of the deductible when a loss occurs and a claim is filed. It is also quite common for one unit to be assessed the entire deductible if the owner is considered responsible for the damage or loss. Currently (as of 2016) Chaparral Estates has a deductible of $5,000.00.
Scenario Three: Some condo corporations fail to buy enough insurance to rebuild at today’s construction costs. Should the building suffer a serious loss, and the condo corporation’s level of coverage is inadequate—each unit owner would be assessed to pay a portion of the cost to rebuild. Currently (as of 2016) Chaparral Estates is insured up to $10,575,500.00 for rebuilding costs. Our buildings are assessed yearly for replacement costs and our insurance coverage is updated as needed.
BETTERMENTS and IMPROVEMENTS
When purchasing a condominium unit, you are buying the unit—with its improvements. However, the Chaparral Estates’ Master Insurance policy provides coverage for the unit as it was originally built by the developer. Therefore, any upgrades to the unit by you or by previous owners, such as lighting fixtures, air conditioners, flooring, kitchen and bathroom cabinets, countertops, floor and ceiling moldings, finished basements, etc., requires your own coverage, referred to as “Betterments and Improvements.”
While condominium laws require that the Chaparral Estates has their own insurance that protects the structure and common areas of the building, upgrades are excluded from Chaparral Estates’ Master Insurance policy. Therefore, as the unit owner, you need to ensure that any alterations or additions to your unit have sufficient insurance protection—regardless of who made the improvements. This includes finished basements, upgraded kitchens with granite countertops, hardwood floors, etc.. The builder’s standard unit included an unfinished basement, laminate countertops, carpeted units, etc. If your basement is developed or you’ve had upgrades completed please ensure that it is covered under this clause in your insurance policy.
ADDITIONAL LIVING EXPENSES
In the event of a valid claim that renders your unit uninhabitable for an extended period of time, you will be required to find alternate living accommodations. Renting a new temporary residence while still keeping up with the mortgage payments on your condo could prove financially impossible. A condo insurance policy will pay your “additional living expenses”, allowing you to stay financially afloat without having to crash on your cousin’s couch for six months.
That is why it is essential that you as an owner purchase your own insurance coverage called a Condominium Unit Owner’s Insurance Policy to fill in the serious gaps in coverage that exist when relying on Chaparral Estates’ Master Insurance policy alone. With an appropriate Condominium Unit Owner’s Insurance Policy you can protect yourself from all of the scenarios described above and more.
WHO PAYS FOR THE CHAPARRAL ESTATES MASTER INSURANCE POLICY?
We all do! Premiums are paid from our monthly condo fees.
Protect your assets and become familiar with what is and what is not covered under your Chaparral Estates’ Master Insurance Policy, and then fill in the inevitable gaps with an appropriate Condominium Unit Owner’s Insurance Policy.
If you have any questions, please call Andrew at Prairie Management (403) 995-2810 or email Andrew at andrew.prairie@telus.net.
