What is personal condominium insurance?
Also known as condo owner insurance, personal condo insurance helps protect your belongings, any improvements made to your unit and your personal liability if you unintentionally cause bodily injury or property damage to others. Following a covered loss, your personal condo insurance could also help pay for temporary accommodation, meals and transportation if you can’t stay in your unit.
Good to know: Legal requirements vary by province
While condo insurance generally serves the same purpose across Canada, the rules surrounding it can differ, depending on where you live. For instance, certain coverages are mandatory in Quebec, but in Ontario, insurance requirements may depend on your corporation’s bylaws.
Why you need personal condo insurance
Even if your condo corporation has its own insurance policy, it doesn’t cover your personal belongings or any improvements to your unit. This means that in the event of damage or loss (due to water, fire, theft, vandalism or other reason), the corporation’s insurance won’t pay to repair or replace your personal property—those costs are on you.
Condo corporation insurance: What’s covered?
Across Canada, condominium corporations (also called strata corporations or co-ownership syndicates) are required to carry insurance that covers both physical loss or damage arising from a covered loss, as well as commercial general liability. Requirements are set out in provincial legislation and each corporation’s governing documents, such as bylaws and the “standard unit definition.”
The condo corporation’s property insurance covers the building structure and common areas, including spaces reserved for your exclusive use, like your balcony and storage locker.
This type of policy typically covers:
- Buildings and structures
- Common property, such as the lobby, hallways, stairs, roof, garage and driveways
- Standard building components, such as electrical and plumbing fixtures, and original unit fixtures such as floors, walls and kitchen and bathroom cabinets
- Commercial general liability insurance that protects the condo corporation against third-party claims for property damage or bodily injury (for example, it might cover medical or legal expenses if someone slips, trips or falls in a common area)
Please note that this policy does not typically cover personal belongings or upgrades within individual units. In most cases, the condo corporation insurance premium is part of your monthly condo fees.
Personal condo insurance coverage
Anything not covered by your condo corporation’s or syndicate’s insurance could be covered by your personal condo insurance policy. Here’s what the different types of coverage often include.
All-risk condo insurance
Protects your personal property against loss or damage due to things like fire, smoke, theft, vandalism, windstorms and certain types of water damage. It also covers:
- Condo upgrades and improvements
Repair or replacement coverage for any improvements made to the original unit (floor coverings, kitchen fixtures or cabinets). You must inform your insurer of these improvements to make sure you have enough coverage. - Additional living expenses: If you can’t stay in your condo after a covered loss, your insurance could help cover extra expenses like temporary accommodation, meals or transportation until your unit is repaired, within a reasonable timeline.
Personal liability coverage
This protects you and the people residing in your condo unit (whether you are there or not) against any claims made for unintentional bodily injury or property damage caused to others—that’s things like fire damage to a neighbouring unit. In Quebec, Bill 141 introduced a requirement for condo owners to have civil liability insurance. The required coverage amount varies depending on the number of units in the building.
Optional coverages
Beyond standard condo insurance, optional coverages can help customize your home insurance so it better reflects your individual needs. You may be interested in the following additional coverages, depending on your situation and province or territory of residence:
Ground water or sewer back-up
Helps cover damage caused by backups from sewers or water seeping in through the foundations.
Floods caused by overflowing bodies of water
Helps cover, among other things, damage caused by water resulting from rising water levels, dam failure or the overflow of a body or stream of water provided that such water reaches the ground level of the insured premises.
Earthquake
Helps cover the cost of damage caused by an earthquake, which is something that isn’t typically covered.
Good to know
If you use your condo for rentals, you must inform your insurer in advance so they can update your policy to cover related claims.
The bottom line
For complete peace of mind, your condo should be covered by two insurance policies. In addition to your condo corporation’s insurance, you need personal condo insurance to help protect improvements made to your unit, your personal belongings and your personal liability. Having the right coverage is important for your peace of mind—and your financial wellbeing.
When assessing your needs, you should also take into account any specific requirements applicable in your province or territory of residence.
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