Unlike homeowners insurance, which is clearly the responsibility of the homeowner, or car insurance, which falls on the driver, condo insurance can be a bit trickier to navigate. This is largely due to the existence of the condo corporation, a governing body responsible for managing and maintaining the shared aspects of a condominium building or complex.
The overlap between the insurance held by the condo corporation and the coverage needed by individual unit owners often leads to confusion. What exactly does each policy cover? Is condo unit owner insurance really necessary if the condo corporation already has its own coverage?
In this article, we’ll break down the differences between condo corporation insurance and condo unit owner insurance, helping you understand what each policy is designed to protect. By the end, you’ll clearly see why condo owner insurance is key to protecting yourself and your property.
Do condos have insurance?
Yes, condos have insurance, but there are two different types—insurance for the owners of the units and insurance for the condo corporation or syndicate. They are not the same; rather, they serve distinct purposes and protect different groups with different needs.
Condo owners are primarily concerned with protecting their personal belongings and the interior of their units, while condo corporations are responsible for insuring the building’s structure and common areas. Given these differences, the two types of insurance are tailored to meet the unique needs of each group.
Though they serve different purposes, these policies work together to ensure that both the property and its residents are fully protected in the event of an unexpected situation.
Condo owner insurance vs. condo corporation insurance
The difference between condo corporation insurance and condo owner insurance is that condo corporation insurance protects the building and common areas, whereas condo owner insurance protects a single owner and the unit they own. Simply put, condo owner insurance is designed to fill the gaps for what’s not covered by the condo corporation’s master insurance policy.
| Condo owner insurance | Condo corporation insurance | |
| Who buys it? | Owner(s) of the unit | Condo corporation |
| Is it required? | Often required by mortgage lender or condo corporation | Legally required |
| How much does it cost? | A few hundred dollars a year | Tens of thousands of dollars a year |
| What does it cover? | Condo unit, owner’s belongings, personal liability, unit improvements | Common areas and amenities, building structure, liability for the building |
Condo owner insurance
Condo owner insurance is a form of property insurance designed to safeguard an individual unit against unforeseen events and liabilities. It is not the same as homeowners or tenant insurance; rather, it’s specifically tailored to the shared ownership structure and unique risks of condo living.
Condo unit owners are typically required to carry insurance, either by their mortgage lender or under the condo corporation’s bylaws. It is often relatively affordable, averaging just $20 a month in Quebec and $21 in Ontario with YouSet, with some policies starting as low as $12.
It typically covers:
- Interior fixtures and renovations (ex. walls, flooring, cabinetry, fixtures, etc.)
- Personal belongings (ex. clothing, furniture, electronics, etc.)
- Personal liability if you accidentally cause injury to others or damage their property
- Additional living expenses if your rental becomes uninhabitable due to a covered event
Condo corporation insurance
Condo corporation insurance – sometimes referred to as co-ownership insurance or strata insurance – is a type of property and liability coverage obtained by the condo’s governing body for the building as a whole. Condo corporations (or co-ownership syndicates) are legally required to maintain a master insurance policy that protects both the physical structure of the building and the organization responsible for managing it.
Typically, condo corporation insurance will cover:
- Damage to the building, including:
- Structural components of the building (ex. roof, exterior walls, foundation, etc.)
- Elements of each unit that are part of the original construction (ex. windows, walls, floors)
- The common elements of the building (ex. lobbies, hallways, elevators, and recreation areas)
- Property and furnishings owned by the corporation (ex. lobby furniture, maintenance equipment, etc.)
- Liability for injuries or damages that happen in common areas, or that happen as a result of equipment owned/operated by the corporation (ex. boilers, elevators, etc.)
- Liability protection for official members of the condo’s governing body (ex. directors, officers, etc.)
Next steps: Condo owner insurance starting at $12/month
Living in a condo offers many benefits, but it also comes with its own set of risks – risks that condo owner insurance is designed to protect you and your belongings against. The good news is that this protection doesn’t have to be expensive, with condo owner insurance starting at just $12 a month with YouSet. Even better, you can find your best price in just 4 minutes!