Condo owners often see “unit contingency” in their insurance policy and wonder what it actually means, or if they need to buy extra coverage. Fortunately, the answer is no, as unit contingency coverage is typically built into most condo insurance policies.
Its role is to protect you from gaps between your condo corporation’s master policy and your own condo insurance policy. Understanding where those gaps are is key to ensuring you’re fully protected.
In this blog, we’ll tell you exactly what unit contingency insurance is, what it covers, and how it works. Let’s dive in.
What is unit contingency coverage?
Unit contingency coverage is essentially a backup plan for insurance at the unit level. It covers the original, standard elements inside your individual condo unit, in case your condo corporation insurance doesn’t fully cover the damages.
Here’s how it works:
In a condo building, the condo corporation usually has a master insurance policy that covers the building itself (ex. the structure, roof, hallways). But that master policy may or may not fully cover your individual unit. Depending on your province and the condo bylaws, the master policy might insure only the bare walls, or it might insure the unit to its original builder’s standard finishes.
That’s where unit contingency coverage comes in. It’s the part of your condo insurance policy that covers your unit if the condo corporation’s policy doesn’t, so that your unit can be restored to its original, standard condition after a covered event.
For example, say a fire damages part of the building, including your unit. The condo corporation’s master policy pays to repair the structure and common areas, but doesn’t fully cover the interior features of your unit. Unit contingency coverage steps in to restore your walls, floors, and other standard finishes to their original condition.
That said, any renovations or upgrades (like hardwood floors, custom cabinets, or high-end countertops) made by you or any previous owner are not covered by unit contingency. For those, you’ll need unit improvements and betterments coverage.
What does unit contingency coverage cover?
Unit contingency coverage steps in when the building’s master insurance policy doesn’t fully cover the standard interior of your unit. Here’s what it typically covers:
- Walls (drywall, plaster, panelling)
- Baseboards, trim, and crown moulding
- Flooring (hardwood, laminate, tile, carpeting)
- Doors within the unit
- Electrical lines and circuits within the unit
- Pipes within the unit
- Bathtubs, showers, sinks, toilets
- Cabinets and vanities
- Countertop
- Backsplash
- Built-in light fixtures and chandeliers
- Switches and outlets
- Staircases or steps within the unit
- Built-in fireplaces and mantels
- Windows, if considered part of the unit
Does condo insurance include unit contingency coverage?
Yes, in most cases, unit contingency coverage is automatically included when you buy condo insurance at YouSet. That means you don’t have to add it separately, like you would with an endorsement for extra protection (like water backup or earthquake coverage).
However, coverage amounts and conditions may vary by insurer, so always check your policy documents for more information.
Why unit contingency coverage matters
There are three main reasons why unit contingency coverage matters:
Protects your investment: Your condo is a major asset, and unit contingency coverage ensures it can be restored to its original condition without leaving you with unexpected out-of-pocket costs. For example, if a burst pipe floods your kitchen and damages the standard cabinets, countertops, and flooring, this coverage would step in if the condo corporation’s policy doesn’t.
Covers gaps in condo corporation insurance: Condo corporations often insure only the building structure, or sometimes just up to the original builder’s finishes. If their policy doesn’t extend to the interior features of your unit, unit contingency makes sure essentials like walls, flooring, or bathroom fixtures are repaired.
Provides peace of mind: Instead of worrying whether the master policy will cover every part of your unit, you can rest easy knowing that unit contingency coverage fills in those potential gaps for the standard features of your home.
