Condo Insurance Guide: What's Covered and What's Not

Condo insurance differs from house insurance. You need to understand what the corporation covers and what you must insure yourself.

1. Corporation Insurance (Master Policy)

The condo corporation must maintain insurance covering:

• Building structure (walls, roof, foundation)
• Common elements (lobby, gym, hallways)
• Standard unit (as defined in the declaration)
• Liability for the corporation

2. Unit Owner Insurance (Your Policy)

You need your own policy covering:

• Betterments and improvements (upgrades to standard unit)
• Personal property (furniture, electronics, clothing)
• Personal liability (injury to others, damage to other units)
• Loss assessment (your share of corporation deductibles)
• Additional living expenses (if unit is uninhabitable)

What Is It?

The standard unit is the baseline condition of the unit as defined in the condo declaration. It defines what the corporation must restore after damage.

What's Typically Included

• Basic flooring (carpet or vinyl)
• Standard paint (primer or one coat)
• Basic light fixtures
• Basic kitchen and bathroom fixtures

What's NOT Included (You Insure)

• Hardwood flooring
• Upgraded appliances
• Custom cabinetry
• Higher-end finishes
• Window coverings
• Built-in shelving

The Problem

• If a claim affects multiple units, the corporation's deductible is charged to the responsible unit owner
• Deductibles can be $5,000-$50,000+
• Without coverage, you pay out of pocket

The Solution

• Purchase loss assessment coverage (part of your condo policy)
• Typically $10,000-$50,000 in coverage
• Covers your share of deductibles
• Costs $20-$50/year

Personal Property (Contents)

• Furniture and appliances you own
• Electronics and computers
• Clothing and personal items
• Jewelry and art (may need riders)
• Typical coverage: $30,000-$100,000

Personal Liability

• If someone is injured in your unit
• If you cause damage to other units
• If you cause damage to common areas
• Typical coverage: $1,000,000-$2,000,000

Additional Living Expenses

• Hotel and meals if unit is uninhabitable
• Storage costs
• Typical coverage: 12-24 months

What Is It?

• Proof of your insurance coverage
• Corporation may require it annually
• Confirms you have adequate coverage

When You Need It

• When buying a condo (lawyer requires)
• Annually (if corporation requires)
• When renting out your unit
• When renovating

Additional Considerations

• Landlord insurance: Covers your unit as a rental property
• Tenant insurance: Tenants must insure their belongings
• Liability: You remain liable for the unit
• Loss of rental income: If unit is uninhabitable

Ontario

• Condominium Act requires corporation insurance
• Standard unit definition in declaration
• Deductible provisions in the Act

British Columbia

• Strata Property Act requires insurance
• Depreciation reports affect insurability
• High deductibles common (up to $100,000)

Alberta

• Condominium Property Act requirements
• Less prescriptive insurance rules

1. Review the condo declaration for standard unit definition
2. Get adequate loss assessment coverage
3. Document your improvements with photos and receipts
4. Review annually as values change
5. Compare quotes from multiple insurers
6. Ask about bundling discounts

Condo insurance is a two-layer system. Understand what the corporation covers and fill the gaps with your own policy. For financial analysis of condo ownership costs, use our Calculators. The AI Advisor can answer insurance questions.

This guide is for educational purposes only.