Condo living offers a unique blend of convenience, community, and comfort. You don’t have to stress about things like a leaky roof or storm-damaged windows because as a condo owner, those aren’t your problems to deal with. However, you’re not completely free from risk. There are still potential hazards to consider – hazards that home insurance for condos, also referred to as condo insurance, can help protect you from.
In this article, you’ll find answers to some of the most commonly asked questions about home insurance for condos, including whether it’s needed or not, how much it costs, and if condo fees include it. Let’s begin.
Do You Need Home Insurance for a Condo?
Yes, you will likely need home insurance for your condo. Although home insurance is not mandatory by law in Canada, your mortgage lender and/or condo association may require you to have insurance for your condo, otherwise known as condo insurance.
You need condo insurance, instead of traditional home insurance, because it’s specifically designed to protect you against the unique risks that come with living in a condominium setting. As such, it typically includes coverage against specific perils for:
- Everything inside your unit, including your personal belongings
- Personal liability for injuries or damages to others
- Loss assessment coverage for shared areas or amenities
- Medical payments for guests injured in your unit
- Legal defense costs if you are sued over a covered incident
- Additional living expenses if you are temporarily displaced
- Improvements or upgrades you have made to your unit
- Coverage for certain types of accidental damage to other units or common areas
As you can see, this list does not include things that you may find in a standard home insurance policy, like dwelling coverage. This is because there are elements, such as the exterior of the building or common areas, that are your condo association’s responsibility – not yours. Consequently, including coverage for these elements in your policy would be redundant. You would pay for it and yet, never use it. Instead, it’s far more practical to have coverages that suit your needs, such as personal property coverage and loss assessment coverage.
How Much Is Home Insurance for a Condo?
According to YouSet policy data, home insurance for a condo (which you now know as condo insurance) costs an average of $31 a month in Ontario and Quebec. At its lowest, it costs $15 a month, while at its peak it costs $75 a month. This means condo insurance costs YouSet customers between $180-$900 per year.
Granted, how much you pay for insurance for your condo can depend on:
- How many people live in your condo building
- Where your condo building is geographically located
- How much your belongings are worth
- How much your condo is valued at
- How many pets do you have
- What optional coverage do you want to add to your policy (ex. Overland water coverage)
- What high-value items do you want floaters or endorsements for
- How many years you’ve been consecutively insured for
Do Condo Fees Include Home Insurance?
No, condo fees do not usually include insurance for individual units. According to RE/MAX, condo fees usually cover:
- Utilities (ex. Water, heat, hydro)
- Administrative costs
- Master condo insurance
- Garbage removal
- Snow removal
- Building maintenance (ex. Window cleaning)
- The reserve fund for major repairs and maintenance
Don’t mistake your condo association’s master insurance policy, typically covered by your condo fees, for home insurance. A master policy exclusively covers the building’s structure and common areas – not you or your unit. Therefore, if you want to protect yourself, your unit, and your belongings, you will need to buy your own condo insurance policy.
Next Steps: Condo Insurance Starting at $15/Month
While owning a condo offers numerous advantages, it’s not without its risks. Accidents can still happen, which is why condo insurance is a must-have. Fortunately, YouSet can help you find the best condo insurance for the lowest price with our free online platform that automatically compares prices from various insurers, all in under four minutes.