CONTENTS AND LIABILITY INSURANCE
FIRE/CONTENTS INSURANCE:NON-CONDO PURCHASE
The purchaser is responsible for arranging house insurance for the
full guaranteed replacement value of the property prior to
closing to be effective on the closing day with the insurance policy
setting out the mortgage lender as a loss payee under the policy.
Our office will not be able to close the purchase of a non condominium
should a written insurance binder not be received by fax from the
insurance company confirming prior to closing. Please ask your insurance
agent to forward an insurance binder letter to our law office
confirming that the coverage arranged is for guaranteed replacement
cost and showing the name and address of the mortgage company.
Note: A binder letter must be received by our office
by fax or by mail before a house purchase (NON CONDOMINIUM)
can be completed!
FIRE INSURANCE: CONDOMINIUM PURCHASE:
Although the condo corporation maintains insurance for the entire
condominium project, it will be necessary for the purchaser to arrange
insurance coverage for the condo unit's contents and liability effective
as of the closing date (or effective as of the occupancy date if buying
a new condo from a builder). Ask your insurance broker to provide
a condominium unit owner's policy and not a tenant's policy.
NOTE: The condo corporation's insurance
will typically only cover whatever was originally provided by the
builder and not upgrades or improvements installed at a later date.
ALSO, confirm that your condo unit insurance will pay for any deductible
owed by the unit owner under the condo corporation's insurance policy.
IF YOU ARE SELLING:
DO NOT CANCEL YOUR PROPERTY INSURANCE until the transaction has in
fact closed. Do NOT (in anticipation of a closing date) inform
your insurance broker to cancel an insurance policy to become effective
on the proposed date of closing; should there be any last minute delay
in closing, you do not want a situation to arise where you are continuing
as legal owner of a property with cancelled fire insurance. NOTE:
A special insurance binder must be arranged with your insurance agent
for a property that will be vacant for more than 30 days.