Condo insurance is recommended if you own a condo unit. Unlike traditional homes, with a condo, you don\u2019t own the building or the land \u2014 you own your specific unit. While your condo corporation will have a master insurance policy, it covers what happens to the exterior of the building and common areas. It won\u2019t cover personal use, repairs to your unit, or theft. It also won\u2019t cover you if a guest is injured in your condo. Hence, having your own insurance policy can help in the event of an accident or fire in your unit. But what exactly does condo insurance cover? And more importantly, how much coverage do you need?<\/p>\n
Here are a few tips about condo insurance, what\u2019s covered, and how to save on your policy.<\/p>\n
What is covered by condo insurance?<\/strong><\/p>\n Your condo is your castle and you want to protect it. Condo insurance covers your personal belongings if there\u2019s a fire, vandalism or theft in your unit. Your policy also covers repairs and provides money to replace your belongings. It even protects you from lawsuits if someone is injured while visiting or staying in your unit.<\/p>\n While renters insurance is optional, condo insurance is mandatory for unit owners. You need coverage in case a fire breaks out in your kitchen and spreads to other units, or in the event your washing machine overflows and leaks into your downstairs neighbour\u2019s bedroom.<\/p>\n Here\u2019s a breakdown of what is and isn\u2019t covered by condo insurance.<\/p>\n Your insurance covers : A burst pipe, lightning, vandalism, smoke or fire damage, theft in your unit, and damage from wind, hail or an explosion.<\/p>\n \u2022 Damage is incurred inside your condo unit : Condo insurance is mandatory for all unit owners. Most master policies are deemed \u201call in\u201d by the condo corporation, meaning it covers lighting, cabinetry, wiring and fixtures. But if your condo corporation has a \u201cbare walls\u201d policy, your insurance must cover everything in your unit aside from the floor, walls and ceiling. What is covered by the condo corporation policy?<\/strong><\/p>\n \u2022 Damages that affect the exterior of the building : The building\u2019s insurer will cover the cost of damages in the event of severe weather, a disaster or fire. What may not be covered by your policy or the condo corporation policy?<\/strong><\/p>\n Earthquakes Note : Supplementary coverage or add-ons may be available to protect against some of these issues.<\/p>\n How much condo insurance should you buy?<\/strong><\/p>\n When shopping for insurance for your condo unit, take an inventory of everything you own. Although time-consuming, it can help you prepare a proper assessment of your home\u2019s interior value. If you ever need it for insurance purposes, you\u2019ll have a copy. Update it when you make a new purchase like electronics or artwork, update fixtures and furnishings, or make any other costly upgrades.<\/p>\n When deciding how much insurance to purchase :<\/p>\n \u2022 Take an inventory of all your belongings : Include all artwork, collections, electronics and valuables. You should take photos or record video footage of every item you own \u2014 and be sure to include serial numbers for all electronic items. Store this information safely online. If there\u2019s ever a fire, you don\u2019t want your inventory list to go up in flames. How much does condo insurance cost?<\/strong><\/p>\n A typical condo insurance policy may cost as little as $250 to $300 for $50,000 in coverage. In Toronto, insurance will cost more than areas located in smaller provinces or territories. Condo insurance provides protection if something happens inside your unit. It also covers you if a fire or damage from a washing machine in your unit affects others. It also provides liability coverage in case someone gets hurt while inside your condo. When you shop for insurance, use a comparison tool to save money on your policy, and only set a high deductible if you have money saved in an emergency fund.<\/p>\n
\n\u2022 You are displaced from your condo unit due to damages : Your policy covers you if there\u2019s a fire, plumbing damage, or another problem that makes your condo uninhabitable. The policy will pay for your hotel bills while repairs are made. It may also cover moving expenses and storage for your belongings.
\n\u2022 Your personal property is stolen from your condo unit : You need a personal insurance policy if you want to get back what was stolen from you. It will cover the theft of items such as electronics, clothing and furniture.
\n\u2022 There is building damage beyond the condo corporation\u2019s policy coverage : If there\u2019s external damage from severe weather, the condo corporation\u2019s master policy will cover it. But, if the damage exceeds coverage in the policy (i.e. if there\u2019s a shortfall), they may require owners to fork over more money to make up the difference. However, your policy will have a section for \u201closs assessment\u201d that covers this.
\n\u2022 Someone gets hurt in your condo unit : Did a guest trip over the runner in your hallway? Bump their head on a kitchen cabinet? If a person gets hurt while in your unit, your insurance will protect you from lawsuits. Your policy will also help cover the person\u2019s medical bills and any associated legal costs.<\/p>\n
\n\u2022 Damages to the common areas : Common areas include the laundry room, lobby and elevators. They also include the grounds, pool area, gym and garage. The condo corporation policy will cover any damages to the common areas, which are shared by all condo unit owners.
\n\u2022 Injuries sustained in a common area : The condo corporation policy includes liability coverage if someone falls on the property due to icy pavement. Or, if the person is injured due to a wet floor in the laundry room.<\/p>\n
\n\u2022 Flooding caused by severe weather
\n\u2022 Intentional injuries to another person
\n\u2022 A nuclear hazard
\n\u2022 Damage from birds, rodents or insects
\n\u2022 Normal wear and tear
\n\u2022 Damage from an underground water system (like a sewer backup)<\/p>\n
\n\u2022 Give every item a dollar value and write it down : You can find inventory apps online that will help you calculate the total value of your belongings.
\n\u2022 Check your master policy : Look over condo corporation master policy to verify whether it\u2019s an \u201call in\u201d policy (covering lighting, cabinetry and fixtures) or a \u201cbare walls\u201d policy (does not cover wiring and plumbing).
\n\u2022 Compare condo insurance plans : Use an online insurance comparison tool to find the best rates on condo insurance. When you come across a plan you like, contact the condo insurance agency to lock in your rates.
\n\u2022 Call an agent : Speak to your condo insurance agent to find out what\u2019s in the condo corporation master policy and give them the total value of the items inside your condo unit. The agent will then recommend how much insurance you should carry.<\/p>\n