REIN Strata Guard = Better Coverage!
To learn about the excellent coverage that is included in the Strata Guard for condo properties, click on any one of the links below.
- Sewer Backup & Water Damage
- Vandalism or Malicious Acts By Tenants
- Rental Income
- Access Denied by Civil Authority
- Loss Assessment
- Assessment Coverage for General Liability
- Special Notes
Flood Coverage: Unlike other policies, the REIN Strata Guard policy provides flood coverage on condominium properties if there has been no flooding within the past 10 years. Talk to one of our customer service representatives for details.
Sewer Backup & Water Damage: In contrast to most policies, the REIN Strata Guard policy does not make a blanket exclusion for loss or damage caused by the backing up or escape of water from a sewer, storm drain, drain, sump, or septic tank. Once again, coverage for damage or loss due to these causes is available through the REIN Strata Guard policy! Talk to one of our customer service reps for details on the specified deductibles that apply.
Earthquake Coverage: Although most insurance policies do not automatically cover this peril, the REIN Strata Guard policy does provide this coverage at no extra cost, depending upon the location of the property.
Vandalism or Malicious Acts by Tenant: This coverage is of particular concern to real estate investors and most, if not all insurance companies exclude this coverage from their standard policies. Under the REIN Strata Guard policy, however, members automatically get $25,000 in coverage, subject to a $1,000 deductible.
Contents: In the context of rental properties, contents insurance is the responsibility of the tenant. However, as an owner of a condominium investment property you still need to protect your interest in the appliances (stove, fridge, washer and dryer), together with any other portable property that you own and store or use in the condominium property. These items are not covered by the Strata Master Insurance Policy.
Rental Income: The REIN Strata Guard policy provides protection against the loss of rental income when the property sustains damage from an insured peril that prohibits tenants from continuing to occupy the property. Rental income coverage enables you to still meet your mortgage or other financial obligations, despite the loss of rental income from the tenant.
Most other insurers place a dollar limit on the claim payout, which is based on the amount of insurance you purchased, and they usually have a co-insurance clause. The REIN Strata Guard policy provides coverage for the “actual loss sustained of business income” during the extended 18 month indemnity period, which is not subject to a dollar limitation. This is a critical feature when a person considers that it can easily take more than a year to rebuild a property, during which time there is no rental income.
Access Denied by Civil Authority: In the event that neighbouring premises to your investment property are severely damaged and access to your property is prohibited by order of civil authority, as described in your insurance policy, the loss of your rental income will be covered during this period of time, not exceeding thirty (30) days. This coverage applies when such a civil order is given as a direct result of damage to neighboring premises by a peril insured under your policy. Loss assessment provides protection against any shortfall in the Strata Corporation’s master policy.
Under the Strata Guard Policy, your share of any special assessment is covered up to a maximum of $100,000 per insured unit, for any one loss, if:
- The assessment is valid under the Condominium Corporations’ governing rules
- It is made necessary by a direct loss to the collectively owned condominium property caused by Insured peril under the Strata Guard Policy.
The Strata Guard policy will pay up to $100,000 for that part of an assessment made necessary by a deductible in the insurance policy of the Condominium Corporation with the exception of earthquake coverage, where the policy will pay up to a limit of $25,000 per insured unit for any loss caused by the application of a deductible applicable to the peril of earthquake under the policy of the Condominium Corporation.
Assessment Coverage for General Liability: Normally the condominium corporation’s Master Insurance policy provides adequate coverage for general liability in the event that the strata is sued by someone. However, if the condominium corporation is under-insured, the owners will be assessed to cover the difference.
Under the Strata Guard policy, your share of any special assessment will be covered up to a maximum of $100,000 per insured unit, for any one loss, if:
- the assessment is valid under the Condominium Corporations’ governing rules; and
- the assessment is made necessary by an occurrence to which the general liability section of the policy applies.
We will not pay more than $100,000 per insured unit for that part of an assessment made necessary by a deductible in the insurance policy of the Condominium Corporation (excluding earthquake losses).
For earthquake losses, we will not pay more than $25,000 per insured unit for that part of an assessment made necessary by a deductible in the insurance policy of the Condominium Corporation.
- Additional Living Expense
When a tenant is forced to move from a severely damaged condominium unit into alternative premises, there exists “Additional Living Expense” insurance protection that the tenant is able to purchase for this type of situation. As the landlord, you are not responsible for protecting your tenant’s insurable interest. Rather, your tenant needs to purchase his or her own personal insurance coverage to be adequately protected.
- Drug Cultivation, Manufacture and Distribution
The REIN Strata Guard policy does not insure loss or damage to insured property however caused, which results directly or indirectly from any illegal substance activity. This exclusion will apply regardless of whether you are aware or unaware of such illegal substance activity or whether you are able or unable to control such illegal substance activity. However, the policy will cover any resulting fire damage.
IMPORTANT: Due to this exclusion – it is imperative that you maintain a regular inspection of your rental properties to avoid losses resulting from an illegal activity.