- Your condo corporation\u2019s insurance policy doesn\u2019t cover your personal belongings in your home. Therefore, you want to ensure that your own condo insurance policy protects these items.<\/li>
- 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.<\/li>
- Your condo corporation\u2019s 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.<\/li><\/ul>\n\n\n\n
What Is Condo Insurance?<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/05\/bigstock-191548927-1024x683.jpg\")
<\/figure>\n\n\n\nCondo insurance is property insurance for homeowners who live in a condominium building. <\/strong>While you may not have to worry about the physical structure of the building, you\u2019ll still need insurance coverage for your personal contents and personal liability. <\/p>\n\n\n\n
Do You Need Condo Insurance If You Live In a Condo?<\/h3>\n\n\n\n
The next logical question that you\u2019re likely thinking is, \u201cDo you need home insurance for a condo?\u201d If you live in a condo, the corporation is legally required<\/a> to maintain insurance for the building. However, that doesn\u2019t cover your personal belongings or your unit. Owners pay their condominium corporation\u2019s insurance through maintenance fees<\/a>, and it generally provides coverage for claims in common areas (like the gym or the lobby). In addition, the corporation\u2019s insurance may even cover portions of your unit, like the windows or a damaged light structure. <\/p>\n\n\n\n
Related content<\/p>
14 Top Condo Developers in Toronto<\/a><\/p><\/section>\n\n\n\n
There are many gaps in your condo corporation\u2019s insurance coverage, which is why you still need to purchase condo insurance. It\u2019s 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\u2019re at fault for in a common area<\/strong>. For example, if you accidentally kick a ball through the window, you could be responsible for the deductible on the replacement. <\/p>\n\n\n\n
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\u2019s deductible. <\/p>\n\n\n\n
Is Condo Insurance Mandatory?<\/h3>\n\n\n\n
While condo insurance isn\u2019t 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<\/a>. For example, under Ontario\u2019s Condominium Act<\/a>, 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\u2019t avoid purchasing coverage.<\/p>\n\n\n\n
Condo Insurance vs Home Insurance<\/h2>\n\n\n\n
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. <\/strong><\/p>\n\n\n\n
Related content<\/p>
6 Types of Home Insurance You Might Need<\/a><\/p><\/section>\n\n\n\n
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\u2019t have to worry about the person above you letting the dishwasher leak or the unit beside you accidentally leaving a candle lit. <\/p>\n\n\n\n
What\u2019s Covered in Condo Insurance? <\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/04\/bigstock-Young-Husband-And-Wife-With-Bl-297691687-1024x683.jpg\")
<\/figure>\n\n\n\nWhat does condo insurance cover? The condominium insurance policy that you purchase will cover the following:<\/p>\n\n\n\n
Personal Property Coverage<\/h3>\n\n\n\n
Your condo corporation\u2019s 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\u2019ll want to tally up the total value of your personal property to ensure you have adequate coverage.<\/p>\n\n\n\n
Personal Liability Coverage<\/h3>\n\n\n\n
Personal liability coverage protects you if you\u2019re 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.<\/p>\n\n\n\n
It\u2019s also essential to note that your condo declarations could stipulate that you\u2019re responsible for damages you cause to other units. Liability coverage can also help here.<\/p>\n\n\n\n
Improvements and Upgrades<\/h3>\n\n\n\n
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\u2019t be protected under the corporation\u2019s policy.<\/p>\n\n\n\n
Additional Living Expenses<\/h3>\n\n\n\n
Your condominium insurance policy covers additional living expenses, such as meals, accommodations, and other related costs, if you can\u2019t live in your unit due to a covered loss or damage. <\/p>\n\n\n\n
Speaking from personal experience, you\u2019ll want to ensure that you have a reliable insurance company because they\u2019ll have to work with the condo corporation\u2019s insurance to handle damages as you find temporary accommodations. <\/p>\n\n\n\n
What Isn\u2019t Covered With Condo Insurance?<\/h2>\n\n\n\n
It\u2019s worth pointing out that your condo insurance won\u2019t cover everything, and this is what you must keep in mind:<\/p>\n\n\n\n
- Your tenant\u2019s personal belongings<\/strong> – Your condominium insurance will only protect you, not any tenants sharing the space <\/li>
- Vehicle damage<\/strong> – While your personal belongings stolen from your car in the garage could be replaced, you need auto insurance<\/a> coverage for your vehicle<\/li>
- Deductible for damage to common area<\/strong> – If you\u2019re deemed responsible for any damages in a common area, you could be responsible for the deductible<\/li><\/ul>\n\n\n\n
How Much is Condo Insurance? <\/h2>\n\n\n\n
![\"woman](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2022\/03\/What-are-condo-maintenance-fees-1024x683.jpg\")
<\/figure>\n\n\n\n - Vehicle damage<\/strong> – While your personal belongings stolen from your car in the garage could be replaced, you need auto insurance<\/a> coverage for your vehicle<\/li>
- Your tenant\u2019s personal belongings<\/strong> – Your condominium insurance will only protect you, not any tenants sharing the space <\/li>