Humber/Ontario Real Estate Course 3 Exam Practice

What coverage does condominium common areas provide?

1. Only areas apart from the individual units.

2. Parking and storage spaces.

3. All shared properties in the complex.

4. All property areas and underlying components.

The correct answer is: All shared properties in the complex.

Condominium common areas coverage extends to all shared properties within the complex. This typically includes hallways, lobbies, elevators, pools, fitness centers, and other communal facilities that residents have access to. Additionally, it encompasses the exterior of the building and any properties that serve the overall function and utility of the condominium community. Understanding this coverage is important because it protects the financial interests of all the condominium owners against liabilities and damages that may occur in these shared spaces. Insurance for common areas is usually the responsibility of the condominium corporation, and appropriate coverage ensures that risks associated with the maintenance and operation of these areas are managed effectively. Other options may limit the scope of coverage to specific aspects, such as individual amenities or components, rather than the entirety of shared spaces, which is not reflective of the comprehensive nature of common areas insurance.