Insurance in condominiums can be tricky, especially when it comes to who is responsible for which items inside a unit. Normally, the building insurance is responsible for what it called the “Standard Unit”, which is most often the original items that the developer put in, and the owner’s insurance is responsible for any upgrades. So, if your unit came with carpet, and it was damaged in a flood, the building would pay for that kind of carpet. If you upgraded to more expensive hardwood, however, your own insurance would have to pay for that upgrade.
It’s gets even trickier in older buildings, where original items may be long gone or forgotten. In one such building, a flood occurred and destroyed much of an owner’s upstairs bathroom. Her insurance company fought with the condominium’s insurance, and with no clear definition of the “Standard Unit” both parties refused to budge. When we began managing this building, her shower had been out of commission for years, and nothing had been done. To solve the problem, we worked with the insurance companies to settle the issue, and then passed a “Standard Unit Definition”, clarifying who is responsible for each item in a unit, Thankfully there have been no further floods in that building, but we are now prepared in case there are.