Condo insurance explained
One of the responsibilities of your condo corporation is to insure the building and common areas, however, this insurance stops at the door to your unit. This means you need your own insurance policy to cover your possessions, liability, and any improvements you've made. You also need to consider liabilities unique to condo living, such as damage originating in your unit that causes damage to another unit.
What does the condo corporation insurance cover?
The condo corporation or association will have its own insurance policy, to cover things like:
- Common areas, e.g. the lobby, gym, pool, party-room, elevators and hallways.
- Items in the common areas like lobby furniture.
- Maintenance equipment.
- Some electrical and plumbing fixtures may be covered.
- Liability for property and bodily damage claims.
Talk to your condo board to understand exactly what this insurance covers and then speak with your broker and he or she will help you determine exactly what coverage you need, to ensure any gaps are covered.
How condo insurance can protect you
Condo insurance can help you protect your belongings, such as clothes, electronics and furniture, in the event they are damaged or destroyed. It can also help cover any repairs needed in your condo unit and cover additional living expenses for a hotel if you are unable to live there while repairs are being made.
Condo insurance can also offer liability protection. If you are sued for damage or an accident on the premises, the right condo insurance can help cover legal fees.
Condo insurance coverage
Condo insurance plans vary depending on your unique needs. Below are some of the things that are covered in a typical condo insurance policy:
- Personal items including clothes, furniture, electronics and appliances. This can also extend to your storage unit if you have one.
- If your unit is severely damaged and becomes uninhabitable, condo insurance can cover the repairs and your living expenses while it’s being restored.
- Personal liability in case you unintentionally cause bodily or property damage to others.
In addition to these basic coverages, there are several additional types of coverage you can discuss with your broker and add to your policy:
- Contingency coverage can protect you if your condo’s insurance is not sufficient for damage they’re responsible for.
- Directors and officers liability coverage is available if you are an elected member of your condo’s board of directors.
Is condo insurance mandatory?
Condo insurance is not mandatory in Canada, however, it may be a condition of your mortgage. Your lender may ask for proof of insurance before they release your funds. Even if you don’t need a mortgage, we strongly recommend condo insurance to protect your investment and for your peace of mind.
Get the right condo insurance with BrokerLink
If you’re looking for the right condo insurance, look no further! At BrokerLink, our brokers can help you find the right insurance at a great price. We’ll take the time to get to know you and understand your unique needs. You can relax and let us do all the work.
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FAQs about condo insurance
Why do I need condo insurance?
If you are a condo owner, it is most likely your most valuable asset. Condo insurance protects your investment in case there are damages, accidents or other unexpected circumstances.
Does condo insurance cover roof leaks?
It depends on your specific policy and the type of condo you own (e.g. townhouse style). Talk to your insurance broker to determine what coverage you have.
Who is responsible for structural issues in a condo?
That depends on where the structural damage is. If the damage is inside the unit, it's most likely the unit owner's responsibility. If it is determined the structural issues existed before the condo was purchased, it's possible someone else could be liable.
Is theft covered in condo insurance?
Theft may be covered under some policies up to certain limits. As every policy differs, it’s important to talk with your licensed insurance advisor to confirm your coverage.
Is it mandatory for condo associations to maintain an insurance policy?
It is usually mandatory for condo associations to have an insurance policy. The exact requirements vary by province.
Is condo insurance cheaper than home insurance?
All insurance policies are different and the rates depend on different factors, including location, size, security measures, to name a few.
If you have any questions, contact one of our local branches.
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