Condominium Insurance

A condominium owner recently asked Pivotal Property Management the following question:


"What type of insurance do I need to purchase for my condominium?"

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This is an excellent question! Many condo owners scrambled to ensure that they have the necessary insurance coverage after a recent fire  at Heatheridge Estates, an 80+ unit condominium complex on Edmonton's south side that pretty much destroyed the whole building.

All condominium corporations are required by law to insure the corporations' property, and is paid for with a portion of your condominium fees. This includes all of the common area. In most cases this will include the walls and structure of each individually owned unit. As an owner you can verify the exact coverage that your condominium corporation has by requesting a copy of the insurance policy from your condominium Board or property management company.

As an owner of a condo/home a major priority should be insuring the contents of your home. This is NOT included  in your monthly condominium fees or condominium corporation policy. This insurance is relatively inexpensive, depending on the cash value amount you wish to insure your contents for, and can be set up by contacting your insurance company of choice.

When living in a condominium complex, liability insurance should seriously be considered. Not only will liability insurance cover you against another individual's claim within your property, but also extends protection from any damage that occurs to another's property that has been deemed to be your fault. For example if you leave a tap running and it floods the unit below yours, liability coverage would come into play.

There is never a shortage of insurance available and you can insure pretty much anything these days. As always we recommend that you seek out professional advice regarding insurance and work with an insurance broker to determine your specific needs and requirements.

Which Property Management Company is Right for You?

Most condominium corporations struggle with finding a competent, professional, and knowledgeable property management company. They often cycle through property management companies on a yearly basis, hiring one after another that does not satisfy their needs or provide professional service. This will be an ongoing issue as many property management companies are unable to retain competent property managers and fail to maintain a strong ethical and/or moral business model.

As a condominium Board member you will undoubtedly be faced with participating in the selection of a property management company for your condominium corporation. This can be a daunting task, especially if you're unsure of what you're looking for, what questions to ask, or have been victim to the deceit of a management company in the past.

The first step in seeking out a new management company is to request a proposal from various companies. At this point you can read through their presentations and determine those that offer the services you require and appear to be professional. Once you have short-listed the companies, make sure to interview them. This is your Board's opportunity to meet the management company and get a true feeling of how you think they would work with you and if they seem like a genuine candidate for your business.

Make sure to request that the manager who will be assigned to your corporation is present at the interview! Many companies may have been around for years and years, and send a member of their senior management to the interview to answer questions, but is their employee who will be assigned to your corporation just as competent and capable of answering your questions and concerns?

Be prepared for the interview. Asking the right questions will allow you to make the best informed decision. Pivotal Property Management includes a list of key questions your condominium Board may want to ask prospective managers in each of its proposal packages. Here is a sample of questions from Pivotal's list:

·         What type of administrative tasks are expected to be handled by the Board?

·         How will I be able to contact my Condominium Manager and will he/she be my primary contact?

·         How will the presence of your Condominium Manager at our meetings improve the efficiency of the Board?

·         How will you ensure our Condominium Corporation receives the best prices for contract work?