Pros and Cons of Condo Contents Insurance

Condo content insurance has become increasingly common in Canada’s major cities since the 1960s. The condo opened a new era of co-living between citizens, symbolizing the country’s modernization. But what is condo content insurance?

Whether you rent or own, you likely have several personal possessions that need protection. It includes your clothing, furniture, electronics, décor, and many more.

A content insurance policy ensures you have protection if your things are stolen, damaged, or vandalized — if you are looking for a condo contents insurance policy, reach out to an insurance company like Surex.       

What Is Contents Insurance for Condo Units?

Condo content insurance provides you with protection for your personal belongings. It safeguards the things you have in your house and the stuff you bring with you when you travel. It is a significant part of condo tenant insurance and comprehensive coverage. The plans cover the most common items in people’s houses. However, some expensive items such as jewelry may be excluded from the policy.

How Does Condo Content Insurance Work?

Condo content insurance works similarly to other policies in that it covers the cost of replacing personal items owned by you and your family. You may have to pay extra to cover accidental loss or damage to your belongings. Most policies have a deductible, which means you will not be compensated for a small portion of your claim.

• The majority of policies include “new for old” coverage; this means you’ll be compensated for the total cost of the items that were lost, damaged, or stolen.
• If you die in your home due to a fire, theft, or accident, content insurance would pay a lump sum.
• It may also protect you if a visitor is hurt or dies while visiting you.

Every policy has a maximum limit and a sub-limit for specific items like cash, antiques, and jewelry. You can buy a policy endorsement for extra protection if you have high-value items.

What Does Condo Content Insurance Cover and What Does It Exclude?

Your possessions, in general, are anything that is not permanently attached to the structure of your home. The condo content insurance includes the following list –

• Decoration
• Instruments
• Electronics
• Appliances
• Furniture
• Clothing

There are a few things that content insurance does not cover:

• Cryptocurrencies
• Business assets
• Information
• Illegally acquired assets

Pros

In today’s high-priced real estate market, purchasing condo content insurance can be a wise decision. Here are five ways content insurance benefits Canadians.

Different Types of Condo Content Insurance

Replacement value and new for old are the two types of condo content insurance. The standard policy is “new for old,” which means that some of your possessions that have been lost or damaged will be replaced with new ones with a higher dollar value.

Get Protection for Your Valuable Collectibles

You can get a policy that will cover your collectibles as long as you make a list of them and keep it up to date. DVD box sets, books, rare stamps, and other unique items are among the collectibles available. If the items are not replaced, then the funds will be used to buy more collectibles.

Tenants Can Also Get Insurance

If you don’t own a home and are renting, you can purchase condo content insurance to protect your belongings within the property. When it comes to property damage caused by something you didn’t do, your landlord’s insurance will cover it.

Dedicated Helplines

Depending on whom you take the coverage out with, you may have access to a dedicated helpline. These helplines can point you in the right direction if you have any problems with your insurance policy. The emergency helpline connects you with reputable tradespeople in the event of a home emergency.

New for Old Contents Coverage

If your belongings can’t be repaired, condo content insurance will cover the cost of replacing them.

Cons

While there are plenty of benefits to condo content insurance, and there are many downsides to buying condo content insurance.

Plan Limit for Claiming

It’s possible that the amount you can claim for a single item is limited, and you’ll have to shell out any extra amount on your own. If you are underinsured, your insurance company may only pay a portion of your claim.

Car Theft or Damage

Theft or damage to your car is not covered under your tenant policy. On your car insurance policy, you’ll need comprehensive coverage. Your contents inside your vehicle at the time of robbery are covered under tenant insurance.

Defect and Wear and Tear Exclusion

Damage to your property caused by a defect, gradual deterioration, or normal wear and tear is not covered. You will not be covered for fair wear and tear if you do not purchase a new for old policy. Your insurer may be able to provide replacement items rather than money, depending on your policy.

Each insurer will have different limits for each item or collection, so make sure you know, especially if they are valuable to you.

Extra Coverage for High-Value Items

Personal property coverage limits do not apply equally to high–value items due to the high monetary risks associated with their damage or theft. Items like jewelry and electronics are covered under separate sub-limits. Purchase tenant insurance policy with higher sub-limits if you own valuable items to ensure you are fully protected.

Additional Coverage

You may choose to add an “endorsement,” which is additional coverage to your policy that protects your content from earthquakes or overland flooding, depending on where you live. Because these events are rare and tend to be limited to specific geographic areas, they are difficult to predict. Content insurance policies do not automatically cover them.

Endnote

Your contents insurance premium determines the type of policy you choose. Your tenant insurance covers your content insurance if you pay rent. The number of personal items and the size of each dwelling differs from one to another. The most basic plan costs $15 per month.

If you are not sure about which plan to pick, talk to an expert. They will help you make a knowledgeable decision.