Condo board asks for proof of insurance

C.F. writes:

Dear Paul:

Can the condo board ask for proof that I have insurance for my suite? I lived in another condo building before and I was never asked for proof of insurance.

Paul replies:

Dear C.F.:

Very simply, yes. The board at your new location is probably being more diligent. Most governing documents stipulate that a unit owner must carry insurance for their suite. This is protection for yourself and your neighbours should something happen. A water leak in your unit can cause undue damage when you need to replace carpeting, kitchen cabinets, or sections of wall. It also protects your neighbours if you were found negligent for leaving the water on in your bathtub running while you were out for the afternoon and you had to pay for damages to neighbouring units. Unsuspecting unit owners are sometimes under the false belief that the corporation’s master policy covers everything in the building. This is often not the case. The corporation’s insurance is meant to cover the common elements. As you can well imagine, a leak on the top floor causing damage to the three (or more) floors below could cause the insurance claims to domino in direction of the leak. I do not want you to be involved in such a situation, so follow the Boy’s and Girl’s Scouts motto: “Be Prepared”, make sure you have insurance and don’t get upset if the board asks for proof.

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