Condo Coverage
Insurance for condos can be complex, so we’re going to help simplify it.
How are condos insured?
As a condo unit owner, you are protected by two separate insurance policies:
Your unit owner insurance policy
When you purchase a condominium, you become the owner of a percentage of a large building. It is your responsibility to obtain your own insurance policy 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 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
Loss of Use
Commonly referred to as Additional Living Expenses, Loss of Use coverage is included in your 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 as well as rent for living elsewhere while repairs are completed. Our plans cover the increased costs of living 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.
Additional coverages
Most 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 to assess your unique needs and determine 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.
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.