Damage to an apartment building can have various causes, such as fire, storm, or a water leak. That is why good insurance is indispensable for both the Owners Association and the individual owner. On this page, we explain concepts such as building insurance policy, fire insurance, water damage, and insurance claim in simple terms.
1
Building insurance policy
The building insurance policy is the collective insurance for the apartment building. It usually covers damage to the building and the common areas. The exact guarantees vary by insurer.
2
Fire insurance
Fire insurance protects against damage caused by fire and other covered risks, such as storm or water damage. The Owners Association typically insures the building, while owners insure their contents separately. Good coverage prevents unexpected costs.
3
Insurance claim
An insurance claim arises from an event where damage occurs to the building or an apartment. Examples include fire, storms, or a water leak. The Property Manager monitors damage to the common areas and coordinates the insurance claim if necessary.
4
Water damage
Water damage can be caused, for example, by a leaking pipe, a defective roof, or flooding. It is important to identify the cause as quickly as possible to limit further damage. Depending on the cause, the insurance may provide coverage.