As a condo owner, you face many of the same risks as homeowners, such as fires, water damage, and theft. However, condo living introduces unique risks and responsibilities that require tailored protection through condo insurance.
In this article, we’ll delve into what condo insurance covers and what it doesn’t cover in Canada. While this overview will provide a general understanding of typical coverage, keep in mind that policy specifics, coverage options, and situations can vary significantly. Therefore, it is strongly advised that you review your insurance documents or consult with your insurance provider or broker directly.
Appliances
Yes, condo insurance typically covers appliances that you own, such as refrigerators, stoves, dishwashers, and washing machines. If these appliances are damaged or destroyed by a covered peril, such as a fire, you can usually file a claim to be reimbursed for repair or replacement costs. However, wear and tear, neglect, or mechanical breakdowns are generally not covered by insurance.
Damage to other units
Yes, if you accidentally cause damage to other units in your condo building or complex, the liability coverage included in your condo insurance policy may help cover the damages to the affected unit(s). For example, if a water pipe bursts in your bathroom and leaks into the unit below, damaging the ceiling, your liability coverage could help pay for the repairs.
Given the nature of condo living and the potential for a simple accident to cause significant damage to other units, having sufficient liability coverage is crucial. In a relatively small condo building, $1 million in liability coverage might be adequate. However, in larger buildings where damages can quickly surpass that amount, it might be wise (or even required by your condo association) to increase your coverage limit up to $2 million.
Earthquakes
No, standard condo insurance policies in Canada typically do not include earthquake coverage and therefore, do not cover any resulting damages. Many insurers consider it optional coverage, which means you would need to select it and have it added to your policy to be protected against earthquake-related losses. If you live in one of Canada’s earthquake zones, including Eastern Northern Ontario, the Southern Great Lakes, Western Quebec, or the Charlevoix-Kamouraska area, this is something you might consider doing.
Fire
Yes, condo insurance typically covers fire and smoke damage, unless you intentionally caused it. So long as it’s deemed accidental, condo insurance can help cover the costs to replace your damaged or destroyed belongings, as well as additional living expenses if your condo unit is deemed uninhabitable, up to a certain amount that is listed in your policy.
Flood damage
No, standard condo insurance policies in Canada typically do not cover flood damage. To be protected in cases of heavy rainfall, flash flooding, river overflow, or spring run-off, it is highly recommended that you add overland water coverage to your policy. Similarly, for coverage against flooding caused by a sewer backup, you would need sewer backup coverage, which is another one that you need to opt into.
Jewellery and engagement rings
Yes, engagement rings and jewellery are typically covered by condo insurance because they are considered personal belongings. However, high-value items often come with coverage limits, so if you want the full value of the item covered, you might need to add it as a specific item on your policy.
HVAC
Yes, if your unit has its own HVAC system for your specific unit, then condo insurance will usually cover it against listed perils, such as fire. If the HVAC system is part of the building’s common elements and maintained by your condo association though, then the condo building’s master insurance policy, which is included in your condo fees, will likely cover it.
Mold
Yes, condo insurance may cover mold damage, but only if the mold results from a covered peril, such as a burst pipe. Otherwise, if the reason for the mold is neglect, maintenance issues, or routine use, then insurers will generally not cover it.
Plumbing
Yes, condo insurance typically covers plumbing issues within your unit if the damage is the result of a covered peril, such as a burst pipe due to freezing, and you have the appropriate coverage included in your policy. However, issues with shared plumbing systems or plumbing problems in common areas are usually managed by the condo association and covered under the master condo insurance policy.
Roofs
In many condo buildings and communities, roofs are considered a common element, meaning they fall under the care of the condo association and protection of the condo’s master insurance policy. However, if damage to the roof occurs that is not caused by a covered peril, the condo association may issue a special assessment to cover the repair costs, which would be your responsibility to pay for.
Special assessments
No, condo insurance usually does not cover special assessments. These one-time fees are charged by your condo association when they encounter major unexpected expenses, when a budgeted expense exceeds its estimate, or to cover litigation costs. For example, if your condo association needs to repair the old and damaged roof of your building and issues a special assessment to cover the cost, it would be your responsibility to pay this fee.
Storage units
Yes, condo insurance can cover the contents of your storage unit against perils like fire and theft. However, since some policies limit the amount of coverage for items stored outside your main living area, you should always review your policy details or consult with your insurer to confirm the extent of the policy’s coverage and possibly consider additional coverage, if needed.
Structural issues
In many condo buildings and communities, structural issues such as damage to the building’s foundation, exterior walls, or roof are considered common elements. As a result, they are typically the responsibility of the condo association and are covered under the condo’s master insurance policy. However, if structural issues arise that are not caused by a covered peril, the condo association may issue a special assessment to cover the repair costs, which would be your responsibility to pay for.
Theft
Yes, condo insurance typically covers break-ins, theft, and burglaries. While it’s no replacement for invaluable family heirlooms or keepsakes, it can often help reimburse you for your stolen property, even if the theft occurs while you’re temporarily away from home, such as on a vacation.
Unit improvements and renovations
Yes, condo insurance can cover unit improvements and renovations that are damaged by covered perils. For example, if your newly renovated kitchen is damaged in a fire, condo insurance would likely reimburse you for the repair or replacement of damaged cabinetry, appliances, and flooring.
Water leaks
Yes, condo insurance typically covers water damage caused by unpredictable and unexpected perils like burst pipes, appliance malfunctions, or accidental overflow. However, not all types of water damage are covered. For example, sewer backups require sewer backup coverage in order to qualify for reimbursement.
Water damage from other units
Yes, condo insurance can cover water damage from other units. For example, if your upstairs neighbor’s pipe bursts and causes water damage to your unit, your insurance policy may help cover the cost of repairs and any damaged personal property. However, this will depend on the specifics of your policy and the cause of the damage.
Wear and tear
No, condo insurance doesn’t cover normal wear and tear because it isn’t caused by an unpredictable or unexpected event. Instead, wear and tear happens gradually over time due to regular use and aging, making it both predictable and expected.
Windows
In many condo buildings and communities, exterior windows are often considered common elements, meaning they fall under the care of the condo association and protection of the condo’s master insurance policy. This isn’t always the case though, so be sure to review both your condo association’s master policy and your own policy for coverage information about windows.