Condo owners’ lack of insurance knowledge puts them at financial risk
Allstate Canada launches contest to find GTA Condo Hero
TORONTO - August 15, 2013 - New research conducted by Allstate Insurance Company of Canada and Abacus Data has found that 61 per cent of Canadian condominium ("Condo") owners don't know or incorrectly assume their building's insurance will cover damage to another unit from water or fire that originated in their unit, potentially rendering them personally liable and putting them at financial risk.
And perhaps because many condo owners are either young, first-time home buyers, or people who like the low maintenance lifestyle that condo living offers, many condo owners aren't asking the right questions about their insurance liability when purchasing their condo.
Allstate Canada's research also found that at time of purchase only 34 per cent of condo owners asked the condominium corporation if they had recently increased their requirement for what should be covered by a condo owner's personal insurance. In addition only 32 per cent of condo owners asked whether the condo corporation had ever raised the deductible on their insurance, and just 22 per cent of condo owners asked if the cost of the condo corporation's insurance premiums had ever gone down.
"Getting answers to important insurance questions can help condo owners and condo residents ensure they will have the proper personal insurance coverage to protect them from a loss or damage in their unit, other affected units, or from unforeseen costs in the event that a condo corporation's insurance policies change," says Saskia Matheson, spokesperson for Allstate Canada. "For example, more and more condo corporations are expecting their unit owners to cover a portion of a large deductible when there is a building-wide claim."
Condo owners and residents can better protect themselves by ensuring they have personalized insurance to suit their specific needs and condo buyers should ask the right questions when they purchase a condo. Sample questions and other helpful tips for purchasing condo insurance can be found at http://bit.ly/122sJWN.
But because insurance isn't the only thing you rely on for security and protection, Allstate Canada wants to give thanks to the condo staff members that often come to the immediate assistance of condo residents when something goes wrong. Allstate Canada is launching the GTA Condo Hero Contest to recognize the role a condo concierge, caretaker, security guard or property manager plays in giving condo owners a helping hand in times of trouble.
"Allstate Canada has teamed with some of the GTA's leading condo experts to identify our Condo Hero," says Matheson. "Basically, that's someone who has gone above and beyond by providing condo residents in the city a place to turn to get help in an emergency or for day-to-day dilemmas."
To nominate a Condo Hero, residents of the GTA should visit www.allstate.ca/CondoHero between August 12 and September 27 to explain why their condo concierge, caretaker, property manager or security guard deserves to be named the Condo Hero. The winning nominator and Condo Hero will each win $2,500 and have a chance to tell their story. Full contest details are available at www.allstate.ca/CondoHero.
- 74 per cent of Canadians looking to purchase a condo in the next few years don't know what their personal insurance should cover versus what the condo corporation's insurance would cover, which could lead to costly mistakes.
- Only 39 per cent of condo owners and 26 per cent of condo buyers know that the belongings of a roommate or boarder are not covered under their personal condo insurance policies.
- Almost one-quarter of condo owners (21 per cent) are not aware that the condo corporation's insurance is responsible for incidents like falling concrete and shattering glass from condominiums.
Allstate Insurance Company of Canada is one of the country's leading producers and distributors of home and auto insurance products, serving Canadians since 1953. The company strives to keep its customers in "Good Hands®" as well as its employees, and has recently been listed on the Best Employers in Canada, Best Employers in the GTA, and Best Employers in Quebec lists. Allstate Canada is committed to making a positive difference in the communities in which it operates and has partnered with organizations such as Mothers Against Drunk Driving (MADD Canada), United Way and Junior Achievement. To learn more about Allstate Canada, visit www.allstate.ca. To find out more about condo insurance and to get a quick and free online quote, visit allstate.ca.
Allstate commissioned Abacus Data (www.abacusdata.ca) to conduct an online survey of 518 condo owners and buyers. The total sample was weighted by age, gender and region to be proportionately representative of the Canadian population of condo owners and buyers. Responses were collected between May 21 - 25, 2013.
For more information about condo insurance, the Condo Hero Contest or to speak to an Allstate Canada spokesperson, please contact:
Thornley Fallis Communications
T: 416.515.7517 x 328