Condo insurance

Condo insurance isn’t mandatory in Canada. However, the condominium corporation may require you to have condo insurance as part of the contract. Similarly, most banks and mortgage lenders will likely require you to have condo insurance as part of your mortgage agreement.

Your condo unit may be one of the most significant purchases you’ll ever make. Condo insurance can help protect what matters most in the event something happens and give peace of mind.

Insurance companies consider a variety of factors to calculate the cost of your condo insurance, including:

• The coverage you need and the deductible(s) you choose
• Property location
• Age of your building
• Type of your building (i.e., low-rise, high-rise, row, townhouse)
• Construction material (i.e., brick, stucco, wood, etc.)
• Type of electrical and heating system
• Proximity to a fire hydrant or fire station

There are a few ways you could save on condo insurance:

• Combine your condo and car insurance
• Review your policy yearly to take advantage of available discounts
• Increase your deductible
• Maintain a claims-free record

Routine home inspection and maintenance can increase safety, which may help you save on insurance by remaining claims-free.

There are various discounts available for condo insurance policies that will be applied based on the information you provide.  

Unlike house insurance, condo insurance helps cover damage or loss for the inside of your unit as well as personal belongings. It also helps cover personal liability claims and may also cover additional living expenses, such as a hotel or other rented accommodations if you can’t live in your unit while it’s getting repaired due to a covered claim.

When choosing a condo insurance policy, think about your level of risk and determine your specific coverage needs. You’ll also want to make sure your coverage helps cover any gaps from the condominium corporation’s master insurance policy.

Other things to consider are your personal possessions. If you have costly jewellery or artwork that has a higher risk of theft and is more expensive to replace, you may want to consider buying additional coverage for your condo insurance policy.

Beyond your property, personal belongings and liability, there may be more coverage options based on the information you provide.

Condominium corporations typically have a master insurance policy that covers the outside structure of the building and common areas, it doesn’t cover damage or loss to contents inside your unit, personal belongings and liability. Buying condo insurance helps cover this gap and more – giving you peace of mind. 

You’ll need a condo insurance policy if your townhouse is part of a condo corporation, meaning you’re not responsible for any damage or replacement to the outside of the townhouse (i.e., roof, windows, steps to the door etc.). If you’re responsible for these types of damages, then you would need a house insurance policy. Speak to your insurance representative to find the best option for you.