We are often asked about the responsibility of a company that uses volunteers or committees to launch projects within the company to reduce costs. Depending on the risk level, it may also be easy to give your insurance broker confirmation of the Committee and its likely role. Assuming that volunteers do not endanger themselves or other residents, is not a problem and they can be covered by company policy for a nominal amount, if any. In the suburbs, real estate development takes shape in the form of townhouses with condominiums. The amount of insurance must be equal to or greater than the amount (if any) set in the company`s statutes. If no amount or criteria are set in the company`s by-law, the amount of coverage must be at least equal to the sum of the reserve fund balance at the beginning of the current fiscal year and the operating account balance in the previous twelve months. Here are five important questions agents and brokers should be aware of when consulting condominiums from the client association. Many condo declarations provide that the company retains an insurance agent. The main purpose of this provision is to protect the interests of mortgage lenders and homeowners. In the case of a high debt (usually more than $25,000), the cheque is given to the insurance agent to prevent the funds from being deposited into the company`s bank account, where it can be used for other purposes at the discretion of the board of directors, instead of repairing damage or worse, which becomes a temptation to defraud.
To the extent that the company`s statutes are not necessary, a company`s insurance does not extend to the improvements made to the units by the owners. For residential units, the improvements do not contain properties contained in the standard description of the insured unit. In the case of non-residential units, there are no fittings and finishes that must be provided by the company. Another concern for condominiums is the way in which members of the association`s management are protected from complaints and whether, beyond the association guarantee form, additional insurance is required to deal with personal liability. The amount of insurance for condominiums depends on the type of unit. Condominium companies must place and maintain at least the following amount of insurance: there are certain advertising obligations when a company adopts or changes the standard description of the insurance. For example, as we consider the standard requirements set out in the legislation, it is important to take into account the specific statutes adopted by the condominium company, since the statutes have the possibility of changing the consideration of a “standard unit” and thus modifying the insurance required for each party in order to maintain it.