You may have your own personal condo insurance for your own condo unit, and your condo building may even have its own separate insurance for the rest of the complex too, but did you know that you could still be on the hook for thousands of dollars in the case of extreme excess water damage from your unit? It’s true.
You Could Be On The Hook
You and your building may have coverage for most of the damage, but if extreme damage to the building or other units comes from your own condo unit, you could be on the hook for the entire condo building’s deductible fee. A $25,000 deductible is common, and can range up to $100,000 or more in some cases! If you are like the many who would consider that a hard bill to have to pay, then deductible coverage for excess water damage may be a good option for you.
How Deductible Coverage For Excess Water Damage Works
One of the biggest risks that condo buildings face are those from water leaks because there are so many different units with plumbing throughout the building.
When Your Condo Apartment Has A Leak
Your condo apartment can experience its own leak from various causes – from your own dishwasher or washing machine leak, to a hidden pipe in your apartment bursting and causing damage. It’s easy to understand and imagine how water leaks have the possibility to cause a lot of damage.
Your Personal Condo Insurance Coverage and Deductible
Whenever you need to submit a claim, you will do so via your own personal condo insurance provider which covers your unit and the belonging’s within it. The same is true during water leak scenarios, you will need to pay your own personal condo insurance deductible to move forward with a claim.
When Your Condo Apartment Leak Affects Others
Some water leaks in condo buildings, however, can be so extensive that they not only damage one unit, but they also damage common areas of the building and other units too. These large water leaks can cause tens of thousands worth of damages and insurance claims.
Your Condo Building’s Insurance Coverage and Deductible
If a water leak causes damage to common areas of the condo building, the building’s own insurance may need to step in to help cover the damages. The strata corporation would have to pay it’s own deductible. However, this deductible is usually much larger than one’s own personal condo insurance.
Be Covered In Case You’re On The Hook
If you are liable for a large water leak coming from your condo apartment that causes extensive damage to other areas of the building, you could be on the hook for much more than just your own personal condo insurance deductible. In some situations, you could be liable for other unit owner’s deductible and your entire building complex’s insurance deductible too. Luckily, there is a type of coverage option that protects consumers from this scenario. With this insurance coverage you don’t need to worry about being on the hook for someone else’s deductible if your unit causes excess water damage.
Contact HIP Today!
If you have any questions, or if you have any interest in excess water damage deductible coverage, we encourage you to contact us here at HIP today. We’d be happy to do our best in answering any questions you may have, and can offer you free independent insurance quotes.