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Condo Insurance

Insurance for condos can be complex, so we’ll help simplify it.

How are condos insured?

As a condo unit owner, you are protected by two separate condo insurance policies:

Your unit owner insurance policy

When purchasing a condominium, you become the owner of a percentage of a large building. You are responsible for obtaining your own condo insurance coverage to protect 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

This policy is responsible for coverage of 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

Access Your Policy Wordings

Ensure your policy meets your needs, and know what you're covered for in the event of a claim.

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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 accidently cause to others.

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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.

Comprehensive

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.

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Collectively Owned Condominium Property Coverage

If losses occur to a condo's common elements, you could be required to share in the costs of any repairs. This coverage will reimburse you for your share of those costs (up to a stated limit).

The loss must reslt from an event that would be covered if it had occurred to your unit.

Condominium Unit Coverage

This coverage applies when your condo corporation's insurance is not enough to cover a loss that affects your unit.

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.

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Comprehensive

Your contents will be covered against any damage or loss not specifically excluded by your condo insurance policy.

Commonly excluded events include:

  • Terrorism
  • War
  • Nuclear events
  • Vacancy over 30 days
  • Wear, tear or deterioration

Loss of Use

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

Additional coverages

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.

Helping Canadians adapt to the changing climate

If you experience a property loss, our Stronger Home and Eco-Friendly products will cover the increased cost of replacing your damaged property with more energy-efficient and resilient alternatives.

Learn more about Climate Adaptability coverages

When to talk to your insurance broker

The insurance policy you purchase when you first move into your home will reflect your needs at that exact time in your life. Over time, our needs change — and you should alert your broker of important updates so they can make sure you're always fully covered.

Learn more   Find a Broker