Colder Temperatures and Your Insurance
Coverage for Owners and Tenants
Especially as temperatures begin to drop and pipes can freeze, understanding your insurance responsibilities is essential to protecting yourself, your home, and your neighbours. And our bylaws require insurance for both owners and tenants.
Why insurance coverage is critical
A recent, real-life synario articulates the enormous risk and cost you assume when insurance isn’t in place. An unreported leak inside a Red Haus unit caused extensive damage over time, including soaked flooring, damaged drywall, and organic growth that spread into the unit below. Repairs required emergency mitigation, demolition, replacement of flooring and subfloor, and an engineering inspection to confirm no structural damage. The total repair cost: $33,021.82 — and rising.
Because neither the owner nor the resident carried insurance, every dollar of this loss is now being charged back to the owner. This situation illustrates how quickly a small issue can escalate into a financially crippling event when proper insurance is not in place.
In contrast, there was a washing machine leak the same week in another unit. The total cost of damage and repairs is under $5,000, because it was handled the same day.
To help ensure you are properly covered, here is what every owner and resident needs to know, and what you should do next.
So what coverage do you need?
Your policy must include:
Betterments and Improvements: Any upgrades inside your unit beyond the Standard Insurable Unit Description (SIUD), such as flooring, cabinets or fixtures.
Contents Coverage: This is everything you own inside your unit. Think of it like if you turned your unit upside down, what would fall out? This is what needs to be insured.
Deductible Coverage: The Corporation carries a $50,000 deductible. Your policy must cover this amount should a loss originate from your unit.
It’s recommended your policy also include:
Additional Living Expenses: Covers temporary accommodation if repairs require you to vacate.
Loss of Rental Revenue: For landlords, covers lost income if your tenant must move out during repairs.
Now how to get the right policy
Provide your insurer with the following documents, which are available from the Site Office, redhauscondos.com, and Shift Suite:
Ask for a Condominium Owner policy tailored to your situation, whether you live in the unit or rent it. Ensure the coverages listed above are included.
Tenants should request a policy that includes contents, liability, and additional living expenses.
When to report a loss
Report any loss immediately. Insurers consider when you “knew or ought to have known.” Delays can lead to damage that may not be covered. The synario first mentioned above is an example of how delaying action can compound the issue, and the cost to fix it.
Take Action
Please review your insurance policy now. Confirm that your coverage meets these requirements, includes the recommended protections, and is sufficient to safeguard you from unexpected and potentially substantial costs. If you are unsure, contact your insurance provider using the documents listed above.
Taking these steps today protects you, your home, and the entire Red Haus community. Peace of mind is priceless.