Condo Insurance Questions

Condominium dwellings represent one out of eight households in Canada. If you're one of the many Canadians thinking about purchasing a condo, you probably have a few questions about how home insurance works for this particular kind of property.

We've compiled some of the most common condo insurance questions we receive and shared our answers below.

Q: What does condo insurance cover?

A: Condo insurance covers your personal belongings, personal liability for your unit, and anything else that is your responsibility.

This can include things like unit improvements (such as new carpet or flooring) and damages to your personal property or a shared common area. Your coverage should include protection from things like theft, vandalism and fire in the same way you would be covered under a home insurance policy.

Q: Is condo insurance the same as home insurance?

A: Not quite. While they are similar, the main difference is when you own a condo you do not own the property it resides on. Your condo corporation will have its own insurance on the property and the building itself, but it is still up to you to make sure you're covered within your own four walls.

When purchasing a house or a condo, however, mortgage lenders will require proof of home insurance. In this way, the two are the same.

Q: What does liability insurance cover?

A: Your personal liability coverage not only covers incidents that occur within your unit, but it follows you anywhere in the world. This means your personal actions are covered for liability no matter where you travel.

Back inside, if you're having some friends over and someone slips on the floor inside your unit and breaks an ankle, for example, your liability coverage would come into play. The liability section of an insurance policy is quite robust, and depending on the nature of the incident, coverage may come from your personal liability coverage, your Voluntary Medical Payments coverage or another section of the liability policy.

However, if this guest is injured on the property outside of your unit, say they slip on some ice outside or hurt themselves near the condo pool, that coverage would be handled by your condo corporation's liability insurance.

Q: Does my condo insurance cover my balcony?

A: That depends on your condo corporation. Many condo owners assume their balcony is covered under the corporation's insurance policy, but that isn't always the case—especially for liability. You're going to want to find out exactly what the condo corporation covers and speak to your OTIP Broker about any additional coverage you might need to ensure your balcony is included in your coverage.

Q: There's water damage in my unit from my upstairs neighbour. What do I do?

A: This can be tricky. Sometimes this is covered under your condo corporation's policy, and sometimes damages have to be recouped through the upstairs neighbour’s insurance provider. If you're not sure, give us a call and we can help you determine the next steps so that you can get your unit repaired quickly and through the right channels.

Q: What type of home insurance coverage do I need if I rent a condo?

A: As a renter, you will need tenant's insurance. It's the same whether you're renting an apartment in the basement of a house or a condo unit at the top of a high-rise. Tenants insurance covers your personal belongings and personal liability. Your landlord's insurance will cover the building and property.

Looking for a condo insurance quote? Get your free, no-obligation condominium insurance quote from OTIP today.