CCI-Review 2022-23 #2

Risk Management by Owners

In the last issue of the CCI Review , the Board of Directors of MSCC #692 shared important information on how they adapted risk management policies and procedures in their condominium high - rise to protect the assets of the corporation. We hope other corporations are taking advantage of the successes the corporation has accomplished. Condominium owners are not required under the Act to obtain or maintain condominium insurance. In fact, home, condo and tenant insurance are not mandatory by law in Ontario; although most banks and mortgage lenders require buyers to show proof of home insurance before advancing a mortgage. Owners could be required to have appropriate homeowners ’ condo insurance if stated in their condominium corporation ’ s governing documents which is designed to fill in the gaps in coverage where the corporation ’ s policy might not offer protection. Every one of us who reside in a condominium community, whether in a high - rise or townhouse style, have responsibilities to ensure we participate in every measure of risk management. Boards would be well advised to include discussion topics on escalating costs for insurance and risk management on the agenda of Owners ’ Meetings, in newsletters and any other manner of Communiquê you share with the residents to develop clear attention to their responsibilities to safeguard their own assets. The corporation ’ s policy does not cover personal property and belongings, any improvements and upgrades made to the unit (before or after taking possession), personal liability if held responsible for damage to another unit or injury to someone visiting the unit. It would be appropriate for all owners to know what they may be responsible for (either the lesser of the entire deductible or the cost of the repair) through an act or negligence that caused the damage. The financial challenges you could face can be immense. For example, consider the cost if you needed to replace all of your equipment after theft or damage without the assistance of insurance.

Trish Kaplan , CCI (Hon’s) is the current part-time Administrator for the chapter; having served in the position from April 2003 to September 2010. She received the CCI Distinguished Service Award from CCI National in November 2006. Trish served as a director on the chapter board from 2010-2015 and was subsequently returned to the position of Administrator. Trish is a condominium owner, served as a director of the corporation she resides in for a time and is a retired condominium manager. Her experience in the different areas of condominium continues to be a benefit to the chapter and its members.

VACATION CAUTIONS

The cold is coaxing some to put travel on their calendar. Here are a few tips that owners should be aware of to help make it less worrisome while they are away: • Arrange for mailbox deliveries to be picked up regularly. • Organize interior and exterior light timing. • Set thermostat to keep water pipes from freezing. • Lock up windows and doors and activate security system (if you have one) • Shut off water valves. To check whether it is shut off, test each faucet by turning it on to its highest level. The water should eventually drain and no longer flow. • IMPORTANT – review your insurance policy carefully for requirements to organize while you are away. Contact your insurer with your plans so if something should happen while you are away, you will be covered. • Enjoy your time away!

LEASING

Condominium owners who lease their unit have additional responsibilities. The corporation ’ s governing documents will provide information on any restrictions relative to renting a unit. As well, the Condominium Authority of Ontario (CAO) provides guides for residential condominium landlords and tenants to understand and navigate the unique features of renting a unit. Information on insurance is provided in the documents.: https://www.condoauthorityontario.ca/condominium - living/buying - renting - or - selling/ renting - a - condominium/

IMPORTANT - insurance policy providers must know the unit is being leased.

CCI Review 2022/2023 - 2 — November 2022 - 21

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