What is the difference between MIP and MCST fire insurance?
If you reside in a condominium or an apartment registered as a Management Corporation Strata Title (MCST) property, it is the legal responsibility of your Management Committee (MC) to insure the entire property for fire damage. If the property is damaged, the MC will make a claim on the insurance policy and use the claim amount to reinstate the property.
The MCST fire insurance policy may not cover the homeowners’ improvements and/or renovations made to their individual properties. Homeowners are encouraged to check the coverage of their MCST’s fire insurance policy and arrange for additional or separate fire insurance to cover improvements and/or renovations made.
While a MIP protects the financial interest of a bank, a MCST fire insurance policy protects the interest of the MC to repair damages to the property in the event of damages arising from a fire. The insurance coverage for a MIP and a MCST policy will not overlap.