If you own a condo in Canada, you likely already know that your condo corporation has insurance, but here’s the catch: it may not cover you the way you think.

This article breaks down what condo insurance is, what’s covered, what’s not, and how to make sure you’re fully protected.

Let’s simplify the complex, because in Canada, condo insurance isn’t optional for peace of mind.

What Is Condo Insurance—and Why It’s Different

Condo insurance is not the same as traditional home insurance. In Canada, two policies typically exist:

• Condo Corporation Insurance (aka “Master Policy”): Covers the building structure and common areas (hallways, elevators, etc.)

• Personal Condo Insurance Policy: Covers what’s inside your unit and your liability
  

🔑 You are responsible for insurance on contents....... everything inside the drywall of your unit.

What Does Condo Insurance Cover in Canada?

Here’s what a standard personal condo policy typically includes:

💡 Tip: Always ask if your policy includes “Contingency Coverage” or “Deductible Assessment Protection.”

What Condo Insurance Doesn’t Cover

Understanding what’s excluded is just as important:

• Water damage from poor maintenance (e.g., worn seals)
  

• Earthquake or flood damage (unless you opt in - we all remember the 2013 Calgary Flood)
  

• Intentional damage or illegal activity
  

• Business inventory stored in the unit

📎 Add-ons are available for sewer backup, identity theft, short-term rentals, and more.

How Much Does Condo Insurance Cost in Canada?

Condo insurance costs vary widely depending on:

• Location (Toronto and Vancouver = higher premiums)
  

• Building age and type (older buildings = higher risk)
  

• Renovations and upgrades
  

• Personal claims history
  

🏷️ Average range: $30–$75/month

💰 Ways to save:

• Bundle with auto insurance
  

• Increase your deductible
  

• Install monitored alarms or security systems
  

Is Condo Insurance Mandatory in Canada?

No law says you must buy it—but your mortgage lender might require it.

Even if they don’t, you’re still liable for:

• Injuries in your unit
  

• Damage to neighbours caused by your unit (e.g., water leaks)
  

• Replacing your personal contents
  

🔍 You can’t rely solely on your condo board’s policy.

Special Considerations for Short-Term Rentals or Tenants

Do you rent out your unit or use Airbnb?

You’ll need to disclose this and may require:

• Landlord insurance endorsement
  

• Loss of rental income coverage
  

• Tenant liability rider if you’re a renter

Failing to disclose = denied claims.

Claims Process: What to Expect

1. Document everything (photos, receipts, timelines)
   

2. Contact your insurer immediately
   

3. Cooperate with adjusters and provide access to the unit
   

4. Track repairs and communicate any delays or issues
   

✅ Pro Tip: Maintain a digital inventory of your valuables before disaster strikes.

Frequently Asked Questions (FAQs)

Q: What is Loss Assessment Coverage?

A: It covers your share of damages to shared areas or costs not covered by the condo corporation’s insurance.

Q: Are my appliances covered?

A: Yes, if damaged by a covered peril (fire, theft, water damage).

Q: Do condo fees include insurance?

A: Only the condo corporation’s portion—your personal policy is separate.

Q: Can I get condo insurance for a rental unit?

A: Yes, but you must inform the insurer. A different rider or landlord policy may apply.

Final Checklist Before You Buy

• ✅ Review your condo corporation’s master policy
  

• ✅ Calculate the value of your belongings
  

• ✅ Ask about deductible coverage and add-ons
  

• ✅ Confirm rental or Airbnb disclosures
  

• ✅ Compare quotes from multiple insurers

Know What You’re Covered For—Before You Need It

Too many condo owners in Canada assume they’re fully insured—until it’s too late.

Don’t wait until disaster strikes. Know your responsibilities, ask the right questions, and choose a policy that fits your lifestyle, property, and risk tolerance.

This is your home. Protect it like it matters—because it does.