Condominium

The average monthly cost of Ontario condo insurance is around $40 to $50.

Premiums can vary depending on several factors, including where you live, your credit score and whether you have past claims. Each condo situation is different, but one of our experts can help.

If you’re insuring a freehold condo townhouse, your premium will be closer to what you would pay for other homes.

Condo insurance is usually cheaper than homeowners insurance, as it doesn’t cover the actual physical dwelling like a home policy does. There could be other factors that might make condo insurance equally or more expensive than some homeowners policies – like the type of building, where it’s located, the construction style and the amount of coverage you need.

This is a policy held by the strata council or condo corporation that covers the entire building and the common elements that are shared by all unit holders.

Most master policies cover the building structure, common elements areas and your standard unit. You’re responsible for any upgrades made to your unit. All unit holders are included as policyholders under a master condo policy. Deductibles can be quite high for a master policy (sometimes $25,000 or more) and not all master policies cover every type of claim – this is why unit owners are encouraged to purchase their own personal condo insurance. Master policies are generally paid through your condo fees.

This is a complicated question because there are lots of things to consider. You should have enough coverage for the contents of your unit, any upgrades you’ve made, plus enough to cover your portion of the deductible on the condo corporation’s master policy. If you have a mortgage, the lender may have a requirement for certain limits. Generally, you should have enough coverage so that no loss will put you in financial trouble.

A lot of insurance companies have great condo coverage, but there are some subtle differences. The best insurance is the product and coverage that fits your individual needs and budget. Since there are many companies and products available it can be hard to determine what is ‘the best’. That’s why talking to an insurance broker is the best place to start.

Improvements and betterments are upgrades, renovations, or permanent changes you’ve made to your condo unit that go beyond what the unit originally had when it was built. Think upgraded flooring, custom cabinetry, renovated bathrooms, granite or quartz countertops, upgraded fixtures, built-ins or finished walls.

The important part is that your condo corporation’s insurance generally covers the standard unit, while your own condo policy can provide coverage for improvements and betterments that you are responsible for. If a covered loss damages those upgrades, say a kitchen fire damages your custom cabinets and countertops, this coverage can help pay to repair or replace them.

In simple terms: if you paid to make your condo better, make sure your insurance knows about it.

Loss assessment coverage can help protect condo owners when the condominium corporation assesses unit owners for their share of certain costs following an insured loss. For example, if there’s a major fire or other covered event affecting the condo building and the corporation’s insurance doesn’t fully cover the loss, perhaps because of a deductible or an amount above the corporation’s policy limit, you could receive a special assessment.

Your personal condo insurance may provide coverage for eligible loss assessments, subject to the policy wording and limits. It’s an important piece of protection because you don't control the condo corporation's insurance policy, but you could still be asked to help pay the bill.

Think of it as protection for the “surprise bill” that comes from upstairs or downstairs, or three units over. A broker can help you determine whether your loss assessment limit is appropriate for your condo.