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Why should I buy condo insurance?

Your condo strata’s insurance generally covers the overall building and common elements, but not your unit. As a condo owner, you’ll need separate insurance, not covered by the strata, to protect your unit and all the stuff you have inside it – like your furniture, clothing, electronics, bikes and all the other things you love.

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Bundle your condo and car insurance for great savings

Combining your condo and auto coverage could save you hundreds on insurance. As an outlet to over 70 of Canada’s top insurance companies, we have access to some of the best rates around. Call us: 1-800-731-2228

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We’ve partnered with Rocket Mortgage to make your mortgage shopping easier

One of North America’s largest online mortgage lenders, Rocket Mortgage helps millions achieve the dream of home ownership. No hidden fees and incredibly low rates provided upfront. Get started with just a few simple questions.

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What does condo insurance cover?

Most condo insurance policies cover the following:

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Personal
property

Covers all the contents in your condo, like your clothing, television, furniture, electronics and everything else you love.

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Loss of
use

If you have damage so severe that you can’t stay in your condo, living expenses can be covered. If you rent the unit, you’re covered for lost income.

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Additional living expenses

If you have a claim, this protection helps cover daily expenses you wouldn’t normally have if you could stay in your condo, like hotel, meals and possibly storage for your stuff.

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Betterments and improvements

This protects the value of any upgrades you’ve made to your place, like those stunning custom kitchen cabinets, bathroom renovations, hardwood flooring and more.

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Third-party
liability

Protects you financially if someone is accidentally hurt while visiting your condo or if their stuff is damaged or stolen.

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Unit additional
protection

This is a special coverage that protects you if your condo corporation has no insurance, or it doesn’t have enough, for the parts of your unit that they are responsible for.

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Common elements loss assessment

Your condo corporation should have insurance for common elements of the building like elevators, walls, pipes, etc. This helps pay your portion of a common loss if the corporation’s coverage doesn’t.

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Additional
coverage

Interested in learning about other coverages to protect your condo? Call us at 1-800-731-2228 with your questions, we’re always happy to help with free advice.

Common questions about condo insurance

A great thing about condo insurance is that it’s generally quite affordable. And, if you already have an auto policy, then combining it with your condo policy can add up to big savings.

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.

No one is legally required in Ontario to have property insurance, but the strata corporation of your condo may require you to have coverage. If you need a mortgage, your bank will likely ask for proof of condo insurance.

Is condo insurance tax deductible?

Generally speaking, no it’s not. if you use your condo as a place of business (something you must tell your broker and insurance company) there may be tax deductions available.

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 polices are generally paid through your condo fees.

While it’s not common, sometimes a group of smaller condo buildings that are around the same size and construction can purchase master policies together to reduce premiums and increase coverage options for the condo associations.

Pooled condo insurance can also mean that several insurance companies are working together to insure a larger condo. For example, if a condo needs $50 million in coverage, five companies may split the risk and take on $10 million each. This is also sometimes called a pooled risk.

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.

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.

As insurance brokers, we work with a number of different insurance companies, so we can shop around and find the right policy for your particular needs.

Call or email us to get started on a quote.