The proper condo insurance is critical for those that own or are looking to own a condominium in Ontario. However, understanding how condo coverage works is not always a straightforward process. That's why working with an Ontario condo insurance broker is so valuable.
To protect your investment as a condo owner, you must purchase condo insurance that works in conjunction with a condo association or corporation’s master policy. Condo owners often wrongly assume they do not need coverage because their condo corporation already has a policy.
Failing to purchase a condo insurance policy in Ontario can leave you exposed to gaps in coverage—gaps that could be incredibly costly in the event of a claim. To better understand the need for coverage, it’s important to learn what master and condo policies commonly cover.
Typically, your condo corporation has a master policy that insures all of the property and common areas that are collectively owned by unit owners. Generally, condo corporation insurance covers the following:
While having a separate insurance policy for your condo unit may not be mandatory, it is highly recommended.
As noted above, a condo corporation’s master policy typically covers common areas. Not only does this limited protection put your personal belongings at risk, but any improvements you make, damage you do to another unit, or injuries that occur in your unit will also not be covered.
What’s more, in the event of a major disaster (like a pipe bursting in your unit), you could be held liable for the cost of any repairs. Master policies often include language that identifies the owner of the unit where a specific loss began as the individual responsible for the entire deductible. With this cost sometimes exceeding tens of thousands of dollars, Ontario condo insurance is a must in order to protect your finances.
Condo insurance typically provides coverage related to the following:
When it comes to condo insurance, it’s important to remember that a condo corporation will seldom protect your personal property or pay for your living expenses if you are displaced following an incident.
As such, before purchasing your unit, it is imperative that you ask for a copy of the condo corporation’s insurance agreement. That way you are aware of your responsibilities and the amount you need to pay for any deductibles.
In addition, when meeting with a broker, bring a copy of your condo’s bylaws and master policy. This will help in the underwriting process and will ensure that you get the right level of protection.