Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The correct answer highlights that Improvements and Betterments made to a Condominium Unit are insured when specifically declared in the policy. This is crucial because various insurance policies have specific coverage terms, and any enhancements made to the unit may not automatically be included.

When a condominium owner makes improvements or betterments, these additions may not be part of the standard coverage. Therefore, it's essential for the owner to expressly declare these improvements to ensure they are covered. This declaration allows the insurer to assess the risk associated with these enhancements and adjust the policy accordingly. A policy that does not include specified improvements might leave the owner exposed to financial loss should something happen to those enhancements.

The other options center around different conditions related to insurance coverage for these improvements. For instance, relying solely on assessment by an appraiser or documentation may not suffice if the policy itself does not specifically incorporate the improvements. Likewise, standard coverage may not automatically extend to improvements unless they are explicitly mentioned. Thus, having a clear and specific declaration in the policy is the key requirement for coverage.