PRACTICAL GUIDE

Does building insurance replace my home insurance?

It depends on what is actually insured. Compare the building and home policies before assuming that cover overlaps or that everything is protected.

1. Ask the building manager for the policy schedule: included units, communal areas, insured amounts and cover.
2. Separate the building from its contents. Your home’s furniture, clothing and personal equipment are not covered by the condominium insurance. To protect them, arrange contents cover under your home policy.
3. Compare insured areas, risks, excesses and liability across both policies. Do not cancel a policy before making this comparison.
4. If you rent your home, clarify the building cover with your landlord and review your own belongings and liability separately.

Example: a fault in a communal pipe may damage a flat’s ceiling and a resident’s computer. The source, affected property and policies need to be considered together.

To compare: the building policy, your home policy and a list of your main belongings.

Resources to save: inventory and annual review.