How are condos insured?

As a condo unit owner, you are protected by two separate insurance policies: 1) Your unit owner insurance policy, which covers your liability, belongings, and any upgrades you make to your unit. 2) The condominium corporation insurance policy, responsible for coverage on the building, common elements, and liability of the condo corp. It is essential to understand both policies to ensure comprehensive coverage.

What does the condo corporation’s insurance not cover?

The condo corporation’s insurance will not cover belongings inside your unit, the value of any upgrades that have been completed in the unit, or unit owner liability.

What is Loss of Use in condo insurance?

Loss of Use, also known as Additional Living Expenses, is included in your condo insurance policy. It covers the potential increase in your living expenses if you're temporarily unable to live in your condo due to an insured event. This coverage also applies if your condo building is evacuated because of damage to a neighbouring property or a significant insured event in your area. For instance, after a fire, you might need to pay for alternative accommodations while repairs are underway. The coverage limit is typically set using a percentage of your content's insurance amount. For condo owners, this is usually 100% of the Amount of Insurance for your condominium contents.

Condo insurance

Understanding your policy

As a condo unit owner, you are protected by two separate condo insurance policies. Your personal condo policy and the condominium corporation insurance policy.

Your condo unit owner insurance policy protects your liability, belongings and any upgrades you make to your unit. However, you should become familiar with the overall condominium corporation insurance policy as it is an important part of your coverage as an owner of this building.

The condominium corporation insurance policy is responsible for coverage on the building, common elements, and liability of the condo corp. The corporation is also responsible for maintaining and communicating the policy coverage to all unit owners.

The condo corporation’s insurance will not cover:

belongings inside your unit;
the value of any upgrades that have been completed in the unit;
unit owner liability

Condo coverage at a glance

Insurance for a condo typically covers your belongings, loss of use, and four coverages specific to condominiums. It includes personal liability coverage for injury or property damage you accidentally cause to others.

Comprehensive

This type of coverage lists events that are not covered if damage occurs to your belongings and unit fixtures.

Also referred to as "Special" or "All Risk".

How it works: an example

You carry a can of paint across the room and accidentally spill it all over your upgraded hardwood flooring, an area rug, and couch.

Result
There would be coverage for your upgraded flooring, area rug and furniture.

Why?
Paint spillage is not specifically excluded in your policy, so you are covered for items considered part of the building, as well as contents.

Condo-specific coverages

There are four types of coverages specific to condo insurance policies.

Collectively Owned Condominium Property Coverage

Condominium Unit Coverage

Condominium Unit Owner Improvements Coverage

This coverage guarantees any improvements made to your unit will be paid for in the event of a loss.

Example
You replaced the standard carpeted floors with more expensive hardwood. A water pipe then burst in the building hallway, flooding your unit.

Result
This coverage ensures your hardwood floors are replaced. While the corporation's insurance would only pay for the carpet, this coverage ensures any additional costs are paid for.

Condominium Deductible Coverage

Like all policies, your condo corporation's insurance policy will have a deductible – in this case, for losses to the condo’s common property. This coverage reimburses you if there is a special assessment by the condo corporation and their bylaws allow you to be assessed a portion of the condo’s deductible. This coverage applies to your unit and can be extended to common areas.

Note that not all condo corporations allow the deductible to be assessed against the owners. In those cases, the corporation pays the deductible. Your condo policy includes a limit of $25,000 for this coverage. Review your corporation's policy with your condo insurance broker to see if this limit is right for you.

Details for contents

Contents are all the items and belongings you have brought into your insured condo.

Comprehensive

Frequently asked questions

What information do I need when purchasing my unit owner insurance policy?

Your condominium corporation's by-laws and insurance policy are important to have with you. They lay out the key differences between your responsibilities as a unit owner and the condo corporation’s responsibilities.

Your broker can evaluate your condominium corporation's coverage and help you buy the best coverage for your situation.

Will my condo corporation policy cover any renovations I’ve done?

Typically, a condo corporation is only responsible to restore the unit to the "base" or "standard" condition, which may not cover any renovations that you or previous owners have completed. The base unit will be described by the corporation's by-laws.

Why does this matter?

Suppose a pipe bursts in the space above your ceiling and floods your unit that has newly installed, high quality hardwood flooring.

Are you or the corporation responsible for the space above your ceiling?
Whose insurance would pay for the damages?
Is the value for your more expensive flooring covered, or just the original (base) flooring?

To ensure you and your belongings are protected we encourage you to ask your broker about condo unit owners insurance.

Why do I need to provide a replacement value for my condo contents?

It is important to provide your broker with the accurate amount of money it would take to replace all of your contents.

This is because two of your coverages - Loss of Use and Additional Coverages for Condos – are set as a percentage of the value of your contents. Calculate the value of your contents.

What does Loss of Use coverage do for my condo insurance policy?

Commonly referred to as Additional Living Expenses, Loss of Use coverage is included in your condo insurance policy. It pays for the potential increase in your living expenses if you are temporarily unable to live in your condo as a result of an insured event. This coverage will also respond if your condo building is evacuated due to damage to a neighbouring premises or a major insured event in your area.

Example
After a fire, you may have to pay your mortgage and rent for living elsewhere while repairs are completed. Our plans cover the increased living costs until you can return to your condo.

Your Loss of Use limit is generally set using a percentage of your content Amount of Insurance. For condo owners, we typically use 100% of the Amount of Insurance for your condominium contents.

Learn more about Loss of Use coverage

What additional coverages do I need for my condo?

Most condo insurance policies allow you to customize coverage for additional items such as jewellery, cottages, boats and motors, or extend certain coverages to a home-based business.

Things to consider:

Do you operate a business out of your home or garage?
Do you own a cottage?
Does the value of your jewellery exceed the limit offered by your policy?

Your broker is the best resource for assessing your unique needs and determining which additional coverages may help protect you and your home.

Talk to your broker

Your initial home insurance policy aligns with your needs at the time of purchase. As life evolves, keep your broker informed to make sure you're always fully covered.

Find a broker