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Improvements & Betterments
In the recent Condo Chat, the presenter noted that either the Condo Owner OR the Condo Corp, through their insurance, is responsible for Improvements & Betterments.
If the Condo Corp is responsible, does the Condo Owner need to inform the Condo Corp of every Improvement & Betterment that has been made to their unit? Even right back to when the unit was constructed?
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1 Reply
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Hi Don, when the Corporation is responsible to insure improvements and betterments, it’s good practice for Owners to provide the Board/Condo Manager with upgrades to your unit. Usually Boards are guessing because it’s impossible for them to determine what limit they should choose for improvements and betterments. You asked even right back to when the unit was constructed – remember if there’s a loss ie. fire or water and there’s damage to your unit, the insurance will return your unit to what it had in it just prior to the loss (not what was upgraded 20 years ago – if it was upgraded more recently). Assuming the Corporation is responsible to insure I&B, although the Corporation is responsible, you as the owner of the unit have to prove what you had. Example: if the Standard Insurable Unit Description (SIUD) indicated carpeting throughout the living area, hallways and bedrooms, and your unit had hard wood flooring (whether installed by you or a previous owner), you have to prove you had hard wood flooring. It would be good practice for all Owners to provide the Board/management with notice of what upgrades were done, when, to where and the cost, this will help them to determine what I&B limit (amount of insurance) to choose on the Corporation’s policy.
