Condo Insurance 101
Condos are complex and your insurance needs are different and more complicated. Because you have both individual and shared responsibilities, two insurance policies are required. One policy is purchased by your condo corporation* and the other is purchased by you, as an individual. Each policy has its own distinct purpose, and they work together to protect you and your condo.
Two policies work together to protect your unique needs as a condo unit owner
Your Condo Corporation’s Insurance Policy
An insurance policy that typically covers:
- the buildings associated with your condo
- common property areas, such as parking, lobby, gym, etc.
- contents in common areas
- liability of your condo corporation
- the basic features of your unit as originally built (where applicable)
Your Unit Owner’s Insurance Policy
A personal insurance policy that typically covers:
- your personal property or contents
- your personal liability
- your building or unit upgrades, such as custom flooring, etc. (where applicable)
- additional living expenses as part of an insured loss
- amounts you must pay towards a deductible or claim under the condo corporation’s policy
Make sure your condo corporation protects your shared interest and responsibility
To best protect your interests and investment, we encourage you to stay informed about your condo corporation’s coverage. Make sure it maintains an active insurance policy that:
- provides full replacement cost coverage for buildings and shared property
- includes coverage for most common perils – including water and earthquake in at risk areas
- has a reasonable deductible.
Purchase a unit owner’s policy with the coverage that is right for your needs
Your personal policy plays an important role in your coverage. It’s good to regularly review and update your coverage so that it continues to meet your needs. Consider the following:
- Is your personal property limit enough to replace your contents with new items of like kind and quality?
- Do you have valuables that exceed limits for specific types of property and require special coverage?
- Have you made improvements or upgrades?
- Is your liability limit high enough to meet today’s standards?
*There is no single term (i.e. corporation, strata, syndicate) to identify the legal entity established to represent all unit owners. We’ve used “condo corporation” to represent this legal entity.
Our Know Your Condo - Unit Owner’s Checklist (if you live or rent in a condominium building) or Owner’s Checklist (if you own only shared property like a club or pool house) can help you review your coverage.
Each province/territory has their own regulations for condominiums. To understand what’s unique for condos in your area, please refer to your location below: