When it comes to condo ownership, who is responsible for the units and common area repairs? This is a very common question among condo unit owners.
Understanding what repairs you are responsible for and what your condo fees and insurance cover can can help you plan and budget accordingly.
In this blog, we will discuss what you need to know about repairs in a condo.
What is a Condo?
Condos are unique properties with shared spaces and common areas. In most cases, the condo corporation is responsible for repairs and maintenance of the common areas, including elevators, hallways, and exterior walls.
Each unit owner is responsible for repairs and maintenance within their own unit. This includes appliances, fixtures, and interior walls. While this covers your direct unit, the property management company will handle all maintenance repairs and replacement that is needed while maintaining the common area.
What are Condo Fees?
Condominium fees, also known as strata fees, cover the cost of maintaining and repairing the common areas, as well as the cost of insurance for the building.
These fees can also cover the cost of amenities like gym or pool facilities, security, and utilities for common areas.
It is important to understand what your condo fees cover so you can budget accordingly.
Who's Responsible for Damage?
In some cases, damage to your unit may be covered by your condo corporation’s insurance policy. This policy covers damages to common areas, liability claims, and sometimes even damage to individual units.
It’s always important to have a condo unit owner insurance policy to protect your personal belongings and to ensure that you are fully covered in case of damage or loss. Condo insurance will also provide a liability endorsement that will cover your personal actions. These policies come with significant wordings, so be sure to consult your insurance agent for a full understanding of what’s covered.
What's an Example of a Personal Liability?
In the event of damage caused by your negligence, you may be responsible for the cost of repairs. For example, if a pipe bursts due to lack of maintenance or if a fire is caused by leaving the stove unattended, you may be responsible for the cost of repairs.
Need more information? Talk to an agent today.
Common Areas (Special Assessments)
A special assessment is an additional fee that is imposed on condo owners to pay for unexpected or extraordinary expenses not covered by the regular condo fees. These expenses may include major repairs or renovations to the building, upgrades to common areas, or unanticipated expenses such as legal fees or insurance claims.
Special assessments can be a significant financial burden for condo owners, as they can be a large one-time fee or a series of payments over time. The amount of the special assessment is determined by the condo corporation and is typically based on the size of your unit and your share of the common areas.
It is important to understand that special assessments are not uncommon in a condo and can arise at any time. It is always a good idea to have a contingency fund in case of unexpected expenses, including special assessments.
Insurance will only cover special assessments when the loss occurred from an insured event. Please discuss further with your insurance agent.
Still Have Questions?
Understanding what repairs you are responsible for and what your condo fees and insurance cover can help you plan and budget accordingly.
Always be aware of what your condo fees cover and make sure to have your own insurance policy to protect your personal belongings.
If you have any questions or concerns about repairs in a condo, don’t hesitate to contact Avenue Home Realty, your trusted Calgary condo management company.