If you own or are planning to own a condo, having a condominium unit owner’s insurance policy is essential. While your condo corporation policy may cover the main areas and structural aspects of the building, your individual condo insurance policy is necessary for protecting your personal belongings within the unit and covering you in the case of unexpected expenses. This page will help you understand some of the key components of condo insurance. Our brokers at Insurepedia will be happy to provide further guidance and help to set up a condo insurance policy customized to your needs.
Like a homeowner’s and tenant policy, condo insurance also has a liability portion which would protect you in the event that you are held financially responsible for unintentional bodily injury or property damage. Aside from this, here are a few coverages that are part of a standard condo insurance policy:
There may be areas that all condo unit owners share such as the lobby, garden, or elevators. Since these areas are shared, all unit owners have some responsibility towards the protection of such facilities. This is where your individual condo unit owner’s policy would come in to cover expenses (up to a defined limit) in the event that your condo corporation’s policy is not sufficient in covering a major property or liability loss.
Planning on customizing your unit with new fixtures or upgrades? No problem; your condo insurance policy can provision such upgrades with an increase to the improvements and betterments limit as an optional coverage. It’s important to consider this coverage and its limits because in the event of a loss, the condo corporation’s policy would only cover the expenses to restore the unit to its standard condition - not including all the upgrades you would have made to your unit.
In the event that you cannot live in your unit (eg.leak in building, fire, necessary evacuation), your condo insurance policy would cover you for the costs of living elsewhere while the building is restored to its original condition.
As with homeowner’s insurance, condo insurance rates are also driven by a range of factors which include:
Don’t feel overwhelmed by the process. Feel free to contact our licensed broker at Insurepedia to discuss your situation and obtain a no-obligation quote. Our broker will be happy to help you set up a policy suited to your needs so you can focus on what matters most to you!