Buying a condo is a huge milestone – congratulations! You’ve found your space, your offer has been accepted, and closing day is just around the corner. But before you get the keys, there’s one important thing to remember: condo insurance.
“Many condo buyers assume their building’s master policy covers everything, but that’s rarely the case. Your lender will still need proof of your own condo insurance before closing,” says Channelle Cote, an AMF and RIBO licensed broker at YouSet.
Thankfully, buying condo insurance for your newly purchased unit is easy and can be done entirely online. Here’s everything you need to know about insuring your new condo before closing, plus how to get instant proof of coverage.
1. Understand what’s covered (and what’s not)
Before buying condo insurance for your unit, you should know where the building’s coverage ends and where yours begins.
Your condo corporation’s master insurance policy usually covers:
- Damage to the building (including structural components, original elements of each unit, common elements of the building, and property and furnishings owned by the corporation)
- Liability for injuries or damages that happen in common areas
- Liability protection for the official members of the condo’s governing body
However, the master policy does not generally cover:
- Your personal belongings
- Any upgrades or renovations you make
- Personal liability
- Additional living expenses (if your unit becomes uninhabitable due to a covered event)
That’s where personal condo insurance comes in. It fills in those gaps, protects what’s inside your unit, and ensures you meet your lender’s requirements before closing.
To ensure you know exactly what your condo’s master policy covers, ask the board or property manager for a copy of the building’s insurance certificate.
2. Gather all necessary details
When you’re ready to start shopping around for condo insurance, having a few key details on hand will make the process smoother. Here’s what you’ll need:
- Your personal information (name, condo address, insurance history, age, occupation, full contact information, etc.)
- Your condo information (closing date, any renovations made, the year of construction, name and contact info for your mortgage company, etc.)
- Inventory of your personal property (an estimate of your belongings’ value)
- Information about the intended usage of your condo (e.g., if it will be your main dwelling or rental property)
These details will help your insurer provide the right coverage for your unit and ensure that proof of insurance meets the lender’s expectations.
3. Compare quotes online
Once you know what coverage you need, it’s time to start comparing home insurance quotes. Instead of calling multiple insurance companies, use an online broker like YouSet. In just a few minutes, you can get an accurate home insurance quote from top Canadian insurers, like Intact and Wawanesa, to find you the best coverage and price.
You’ll get the best quote, along with any exclusive discounts you qualify for. Plus, YouSet’s algorithms ensure your policy meets all lender requirements, so you don’t have to guess.
4. Buy your policy and get instant proof of coverage
Once you’ve found the best price and selected your policy, you can purchase it online without any phone calls or in-person appointments. You’ll then receive your proof of insurance (declarations page) right in your inbox shortly after. This document includes:
- Your full name and address
- Coverage start date (it should be before or on the closing date)
- Policy number and insurance details
Forward this document to your mortgage lender or lawyer as soon as you receive it, as your lender won’t release the mortgage funds without proof of an active policy.
Need help understanding your condo insurance policy? Here’s how to read it.
5. Confirm your coverage for closing day
Before closing, your lawyer or notary will confirm that your condo insurance is active and correctly dated. That said, it’s a good idea to keep a digital or printed copy of your documents handy on closing day just in case.
5 questions condo owners have about closing and insurance
Still have questions? Here are some quick answers to the most commonly asked questions by condo owners:
How soon before closing should you get condo insurance?
You should get condo insurance at least 30 days before closing to give yourself time to shop around and compare different policies and quotes. Most lenders require proof of insurance before closing, and starting the process early helps avoid delays.
Do you really need condo insurance to close on a condo?
Yes. If you’re financing your condo with a mortgage, your lender will require proof of insurance before releasing the funds.
How much does condo insurance cost in Canada?
Condo insurance costs an average of $21 per month in Ontario and $20 per month in Quebec, but these costs vary based on factors such as location, building type, and coverage limits.
What if I’m paying cash and don’t have a lender?
Even if you don’t have a mortgage, getting condo insurance is still a smart idea. It protects your belongings, covers your liability, and can help pay for repairs and additional living costs if anything goes wrong.
What happens if you don’t have condo insurance on closing day?
If you don’t have insurance on closing day, you will not be able to complete the purchase, and closing will be delayed or cancelled.
Next steps: Get condo insurance before closing day
Getting condo insurance before closing doesn’t have to be complicated or time-consuming. With YouSet, you can compare top Canadian insurers and get the best quote possible, buy your policy online in minutes, and instantly receive proof of coverage for your lender.
This means less stress, fewer calls, and one less thing to worry about before closing.
