What is condo insurance in Canada?
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When it comes to buying a condominium, do you know whether you need condo insurance or whether the condo corporation’s insurance also covers your personal belongings? And did you know that there are differences between condo insurance and home insurance? These are just a few of the points we’ll cover in this article, in addition to sharing our tips for paying less for your condo insurance premium.
What is condo insurance?
Condo insurance and home insurance are similar, but there are important differences. First, by distinguishing between the insurance held by the condo corporation and the condo insurance held by each co-owner. Then, special coverages for condos.
The condo corporation has its own insurance policy for the building and common areas. A condo insurance policy protects the contents of your unit. It generally offers insurance for your personal belongings, liability insurance, additional living expenses if you need to relocate due to a claim and special coverages such as unit improvement coverage and unit contingency coverage. Like home insurance, condo insurance also has optional coverages that can be added: identity theft, water damage, sewer backup, etc.
What's the difference between personal condo insurance and the condo corporation's insurance policy?
As mentioned above, the condo corporation’s insurance policy covers the building and common areas. A condo insurance policy covers your unit and personal belongings.
- Condo insurance : This policy protects individual unit owners, including personal effects, liability insurance and unit improvements.
- Condo corporation insurance : This policy protects the building, including interior common areas (lobby, elevator, etc.) and exterior common areas. Examples include elevators, roofs and windows. It also protects residents from situations that could endanger the public, such as falling debris.
What does condo insurance cover?
Condo insurance protects everything in your unit. First, it offers standard protection, such as coverage for personal effects and liability insurance. Then there are optional protections such as identity theft and water damage.
Standard protections
Here are the standard protections:
- Personal belongings: Your condo insurance covers your personal belongings (furniture, clothing, jewelry, electronics, art, etc.) against loss, theft, vandalism, fire and windstorm. What’s more, your personal belongings are insured even if they’re not inside your condo (e.g., storage unit).
- Liability insurance: Liability insurance protects you from legal action if someone is injured in your condo.
- Additional living expenses: If you need to relocate due to a claim, your insurance covers living expenses such as hotel, food and clothing.
- Improvement insurance : Improvement insurance covers renovations to your unit. Other coverages specific to condos exist, such as coverage for unforeseen expenses in common areas if a special assessment is requested from co-owners. Check the coverage offered by your insurer and your condo corporation.
Optional protection
Here are the optional protections:
- Water damage: This coverage protects you against water damage, such as sewer backup (e.g. sewer and septic tank), surface water (e.g. rain and snow melt) and above-ground water (e.g. seepage through roof, doors and windows). In some cases, condo insurance protects your personal belongings inside your condo and in your storage unit.
- Identity theft: This coverage protects you in the event of identity theft and fraud, covering legal fees and the recovery of your identity.
How do I take out condominium insurance?
Before purchasing condo insurance or renewing your current policy, compare several quotes. Be sure to check the conditions, exclusions and coverage in the event of damage for each insurance company.
To do so, you can use our online comparator to compare condo insurance quotes based on your specific needs.
That said, insurance is a complicated business. So don’t hesitate to ask a professional for advice. For example, you can contact a damage insurance brokerage firm like YouSet. They have access to several insurance companies and exclusive discounts. Hence, they can then present you with the best offer available on the market. On the other hand, an insurance agent only has access to the products of the insurance company he or she works for.
How can you save on your condo insurance premium?
Of course, condo insurance premiums vary from person to person, depending on a number of factors. But you can save money and reduce your condo insurance premium with the following tips:
- Bundle your insurance: when you combine your condo insurance with your car insurance on the same policy, you can save money. For example, you can save up to 15% when you combine your home and car insurance with our partner YouSet.
- Increase your insurance deductible: you can reduce your insurance premium when you increase your insurance deductible.
- Compare condo insurance rates online: you can use our home insurance comparator to get several condo insurance quotes.
- Pay your insurance premium in one lump sum: when you pay your condo insurance premium for the year in one lump sum, many insurance companies offer a discount.
Bottom Line
In short, condo insurance is essential to protect your personal belongings, but also to cover you against lawsuits and additional living expenses. For its part, the condo corporation has its own insurance policy to cover the building and common areas. As we’ve seen in this article, there are ways to save on your condo insurance premium. Finally, don’t forget to try our home insurance comparison tool to find the best condo insurance policy for your needs.
Frequently asked questions about condo insurance
What kind of insurance is mandatory for condominiums?
Condo insurance is not legally required, but mortgage lenders and banks require it for properties that are not fully paid up. That said, condo insurance is essential to protect your personal belongings and get a liability insurance.
Who pays for condominium insurance?
The condominium corporation’s insurance policy, which covers the building and the common areas, is paid for by all co-owners through their condo fees. The condo insurance policy, which covers your unit and your personal belongings, is paid for individually by each co-owner.
What type of insurance should you choose for a condo?
Condo insurance offers standard protections such as personal belongings coverage, liability insurance, additional living expenses and special coverages such as unit improvement coverage. What’s more, condo insurance offers optional coverage such as identity theft and water damage. It’s up to you to choose the ones that suit your needs.
What is the average price per month for condo insurance?
The average price of condo insurance varies according to several criteria, such as the location of your condominium, your claims history and the deductible you choose. The average cost of condo insurance in Quebec and Ontario is $31/month ($372/year), according to our partner YouSet.
