Despite paying monthly maintenance fees as a condo owner, you’re still responsible for purchasing your own condo insurance policy to protect your personal contents and liability.
In this article, we will share everything you need to know about condo insurance.
Key Takeaways:
- Your condo corporation’s insurance policy doesn’t cover your personal belongings in your home. Therefore, you want to ensure that your own condo insurance policy protects these items.
- Your condominium insurance policy will cover your personal belongings from an insured loss in your unit, the storage locker, or your parked vehicle in the garage.
- Your condo corporation’s insurance policy has many gaps that should be covered by your policy. For example, personal liability and living expenses if you have to vacate your unit.
What Is Condo Insurance?
Condo insurance is property insurance for homeowners who live in a condominium building. While you may not have to worry about the physical structure of the building, you’ll still need insurance coverage for your personal contents and personal liability.
Do You Need Condo Insurance If You Live In a Condo?
The next logical question that you’re likely thinking is, “Do you need home insurance for a condo?” If you live in a condo, the corporation is legally required to maintain insurance for the building. However, that doesn’t cover your personal belongings or your unit. Owners pay their condominium corporation’s insurance through maintenance fees, and it generally provides coverage for claims in common areas (like the gym or the lobby). In addition, the corporation’s insurance may even cover portions of your unit, like the windows or a damaged light structure.
There are many gaps in your condo corporation’s insurance coverage, which is why you still need to purchase condo insurance. It’s also worth mentioning that even though your condo corporation has an insurance policy for the building, you could still be responsible for paying the deductible for any damages you’re at fault for in a common area. For example, if you accidentally kick a ball through the window, you could be responsible for the deductible on the replacement.
You may want to consult with an insurance broker to see if they provide coverage for situations in which you could be responsible for the corporation’s deductible.
Is Condo Insurance Mandatory?
While condo insurance isn’t legally mandated, most lenders and condominium corporations will request proof of insurance. Make sure to review the governing documents of your condo, which consist of the declaration and bylaws. For example, under Ontario’s Condominium Act, individual unit owners are subject to the rules of the governing documents. If your condominium association and mortgage lender require proof of insurance, you can’t avoid purchasing coverage.
Condo Insurance vs Home Insurance
What are the specific differences and nuances of condo insurance? Your home insurance policy will cover the entire structure, while a condo insurance policy will cover the improvements and upgrades within your unit.
Your condominium insurance policy will protect you against your neighbours because someone in the unit above you or next to you could damage your unit. When you live in a home, you likely don’t have to worry about the person above you letting the dishwasher leak or the unit beside you accidentally leaving a candle lit.
What’s Covered in Condo Insurance?
What does condo insurance cover? The condominium insurance policy that you purchase will cover the following:
Personal Property Coverage
Your condo corporation’s insurance policy does not cover items stolen from your vehicle, for instance, personal belongings or furniture. However, your personal insurance policy covers your items stored in the building’s storage locker or in your vehicle in the parking garage.Therefore, you’ll want to tally up the total value of your personal property to ensure you have adequate coverage.
Personal Liability Coverage
Personal liability coverage protects you if you’re deemed responsible for an injury to a guest in your home. This type of coverage would protect you from civil suits or medical expenses that could arise from the situation.
It’s also essential to note that your condo declarations could stipulate that you’re responsible for damages you cause to other units. Liability coverage can also help here.
Improvements and Upgrades
The condo corporation is responsible for insuring the unit, but it is only required to restore any damages to the original state. Any improvements to your countertops, flooring, or light fixtures won’t be protected under the corporation’s policy.
Additional Living Expenses
Your condominium insurance policy covers additional living expenses, such as meals, accommodations, and other related costs, if you can’t live in your unit due to a covered loss or damage.
Speaking from personal experience, you’ll want to ensure that you have a reliable insurance company because they’ll have to work with the condo corporation’s insurance to handle damages as you find temporary accommodations.
What Isn’t Covered With Condo Insurance?
It’s worth pointing out that your condo insurance won’t cover everything, and this is what you must keep in mind:
- Your tenant’s personal belongings – Your condominium insurance will only protect you, not any tenants sharing the space
- Vehicle damage – While your personal belongings stolen from your car in the garage could be replaced, you need auto insurance coverage for your vehicle
- Deductible for damage to common area – If you’re deemed responsible for any damages in a common area, you could be responsible for the deductible
How Much is Condo Insurance?
According to Ratehub.ca, condo insurance in Canada costs between $400 and $600 annually. However, your insurance premium will depend on a variety of factors, including:
- Property type
- Value of your personal belongings
- Your credit score
- The building’s location or community
- Replacement cost (actual cash value vs replacement cost value)
- Internal construction and safety features of your unit
- Your claim history
How to Get Condominium Insurance
The best option for condominium insurance is to obtain quotes from several providers. An insurance broker can be helpful in this case.
From there, you can see if discounts are available based on your employment or previous education. For example, look into emails you receive from your alma mater’s alum relations department about group deals, as they could have an insurance option.
Some of the best places to find condo insurance in Canada are:
- Desjardins
- ThinkInsure
- TD Insurance
- The Co-operators
- Aviva Canada
- Intact Insurance
- Square One Insurance
You should gather multiple condo insurance quotes before you make a decision. Above all, ensure you find the best coverage for your budget and specific needs to guarantee your protection.
