What is deductible buy down coverage?
Let's illustrate with a scenario: imagine an accident results in $500,000 worth of damage to your condo and units below you causing the Strata's policy to act.
Under your current homeowner's policy, your strata liability limit is only $50,000 causing a short fall of $450,000 that you are obligated to pay.
However, if you have opted for a buydown XS Strata Water Damage Deductible Insurance you are now fully covered. Get a quote for this coverage now.
- Up to $1,000,000 limit
- Available for Unit Owners who live in or have short or long term tenants in their unit
- Underlying limit requirements of only $25,000
- Available as an extensions to your existing homeowner policy.
The Role of water damage strata deductible buy down coverage
What happens when unforeseen events challenge your financial stability? This is where deductible buydown and downtime coverage emerge as vital safeguards. Water Damage Deductible buydown empowers you to adjust your deductible to a manageable level, a flexibility that caters to your financial comfort. On the other hand, downtime coverage steps in as a financial lifeline, providing essential income when your truck is sidelined. Beyond these, there are robust protections against total losses, theft, and even comprehensive road services. These layers of security work in unison to shield you from unexpected financial burdens, offering a sense of security in an unpredictable world.
Excess Strata Water Damage Deductible Buy-Down
Our Excess Strata Water Damage Deductible Buy-Down coverage is designed to bridge the financial gap for unit owners, offering an added layer of security in the face of substantial losses. This coverage activates at a threshold of $25,000, the minimum limit from the primary policy, and can extend your limit up to $1,000,000.
Water damage stands as the predominant cause of claims in residential strata buildings, both in terms of occurrence and impact. The magnitude of these losses has led to a marked increase in the deductibles of building policies. In the wake of significant damages, strata corporations often find themselves compelled to levy the cost of these deductibles onto individual unit owners.
These assessments can soar to several hundreds of thousands of dollars. Although a unit owner’s insurance policy typically includes coverage for such assessments, a considerable disparity often remains between the potential assessment amount and the coverage limit available to many unit owners.
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Who pays strata insurance deductible?
In the case where the strata's water damage deductibles are very high, the strata will typically impose a bylaw requiring the 'at fault' unit owner pay the entire insurance deductible. Since sharing the cost of the deductible could be significant, most stratas will deem it unfair to punish innocent owners, the cost is passed onto the owner who causes the loss. It is important for every owner living in a strata to fully understand the implications of causing an insurance claim requiring the building's policy to act.
What is strata water damage deductible insurance and how does it work?
Strata deductible insurance helps pay your portion of the strata corporation's master building policy following a catastrophic event.