Guide to condo insurance
Insuring your condo with a flexible policy is the best way to protect the things you love the most. From personal belongings coverage, to insuring your home against water damage or fire, a condo insurance policy can go a long way, providing some much-needed peace of mind.
Common misconceptions exist with condo insurance , but YouSet is here with all the answers. Condo corporations typically offer insurance for the building itself and the common areas, leading to confusion as to what exactly is covered and what you might need insurance for.
Here is a complete guide to condo insurance, including what it covers, ways to save money on your policy, as well as its benefits and importance.
Guide to condo insurance
Insuring your condo with a flexible policy is the best way to protect the things you love the most. From personal belongings coverage, to insuring your home against water damage or fire, a condo insurance policy can go a long way, providing some much-needed peace of mind.
Common misconceptions exist with condo insurance , but YouSet is here with all the answers. Condo corporations typically offer insurance for the building itself and the common areas, leading to confusion as to what exactly is covered and what you might need insurance for.
Here is a complete guide to condo insurance, including what it covers, ways to save money on your policy, as well as its benefits and importance.
What is condo insurance?
Simply put, condo insurance is a personal policy that protects your individual unit against the unexpected. Your condo corporation typically insures the building’s common areas and amenities, including the gym, pool, elevators, lobbies, and more. But that’s only half the battle.
By securing a condo insurance policy, you are ultimately protecting your unit, effectively rounding off the coverage automatically offered by your condo corporation. Condo insurance policies can be easily customized depending on your needs, however, standard coverages exist. Standard condo insurance policy coverages include personal liability insurance, personal belongings insurance, and additional living expenses.
There are also optional coverages you can add to your policy, ranging from identity theft, overland water, sewer backup, and more.
Now, let’s take a better look at exactly what is covered by condo insurance, and how it can protect the things you value the most.
What does condo insurance cover?
A common question that comes up when individuals are shopping for condo insurance for the first time is what is covered. While condo insurance policies may differ from company to company, certain coverages are essential components to every policy.
Liability insurance
Personal liability insurance is a crucial coverage in any condo insurance policy. This coverage protects you against potential lawsuits, particularly, if someone gets hurt in your condo unit while visiting.
With personal liability you are covered as an insured anywhere in the world, even if you accidentally cause damage to another individual’s property. Whether you left the water running and caused damage to your neighbor’s unit, or a visitor took an unfortunate slip while visiting, this coverage protects you. We recommend taking at least $2,000,000 in Civil Liability if you live in a condo building with 13 units or more.
Personal belongings
Personal belongings insurance, also commonly referred to as contents insurance, is the best way to protect your prized possessions, including clothing, appliances, furniture, and more. This coverage protects you against loss or damage to your personal belongings caused by insured events, such as water damage or fire.
Keep in mind that your personal belongings don’t even need to be in the condo unit to be insured and remain insured wherever you may be – as long as you are temporarily away from your home.
Additional living cost
In the event you must temporarily relocate due to a claim, additional living expenses coverage has you covered. This protection is designed to cover the normal cost of living, including the price of a hotel, food, and clothing. Additional living expenses coverage is typically included in every condo insurance policy!
Water damage
Water damage represents the leading cause of damage to homes in Canada, and is an important consideration to make when shopping for home insurance. Insurers will typically offer three endorsements for water damage coverage, including sewer backup, overland water, and above ground water coverage.
As the name suggests, sewer backup covers you if water backs up into your home from a septic tank, a sewer, a floor drain, or a sump, and helps you avoid sticky situations. Next, overland water coverage is designed to cover any losses or damages caused by fresh water, including excessive rain or melting snow. Lastly, above ground water coverage protects your home from water infiltration stemming from above through roofs, walls, windows, and doors.
Identity theft
Adding identity theft coverage to your condo insurance policy is a great way to protect yourself, especially in light of the ongoing rise of identity theft and fraud in the nation. This coverage is designed to reimburse any legal fees associated with reclaiming your identity, as well as fees paid to replace legal documents.
Identity theft coverage can also protect you if an unauthorized use of a credit or debit card is issued in your name. In some instances, this protection is automatically included in your condo insurance policy, but is typically an add-on.
Improvements and Betterments
Have you recently made upgrades to your condo unit and are wondering if they are protected? With Improvements and Betterments Protection, any renovations or money you have put into improving your condo will be covered.
From upgrading your kitchen or bathroom, to replacing all the light fixtures, Improvements and Betterments Protection will insure you receive the full value of your unit improvements in the event of an insured event.
How is condo insurance calculated?
A number of factors will go into the calculation of your condo insurance premium. Chief among them is the location of your condo, which has the most significant impact on your premium.
Other factors include the property type, the age of the condo building, your personal claims history, and how you intend on using the condo. For example, if you decide to rent out your condo, your insurance premium may go up.
The internal construction of the condo unit could also affect the price, as could certain renovations. If your condo unit comes equipped with an alarm system, the possibility of theft decreases, therefore reducing your insurance premium. A soft credit check will also be done when generating your insurance premium, but don’t worry – this will not impact your credit score.
Ultimately, condo insurance premiums will differ from policy to policy as there are a range of optional coverages you can add to it, as well as different coverage limits set for personal belongings, and more.
Ways to save money on condo insurance
There are a number of ways to save money on your condo insurance policy and find the best rate. From raising your deductible, to eliminatoing unnecessary coverages, here are a few tips to save money on your condo insurance policy.
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Shop around
Like when shopping for anything, don’t settle for the first price you receive. By comparing condo insurance premiums from different insurers, you can guarantee that you will get the best possible rate for your policy. Our automated platform takes care of this, comparing condo insurance quotes from top insurers so you don’t have to.
Update your condo
A good way to avoid major insurance claims is to keep your condo in top shape and proactively update it. Whether that remains replacing the hot water tank before it’s too late, or upgrading your windows, small home improvements can go a long way in saving money on future condo insurance policies.
Raise deductible
One way to save money on your condo insurance is to increase the deductible. The deductible is the amount you must pay in the event of a claim . Typically, standard condo insurance deductibles range between $500 and $1000 depending on the value of your unit.
We recommend choosing the highest possible deductible that is financially feasible for you in the event of an insured event. Indeed, the higher deductible you set, the more you will save on your condo insurance premium. Please note, however, that deductible savings plateau at a certain point and should be something you discuss with your broker.
Eliminate unnecessary coverages
Understanding the different coverages in your condo insurance policy and eliminating unnecessary ones can help you save significantly on your premium. This can mean not over-insuring your personal belongings, or eliminating coverages that simply don’t apply to your unit.
Bundle products
Bundling different insurances together, typically home and auto, is among the most effective ways at saving money on your condo insurance policy. By bundling your car and condo insurance with YouSet, you can take advantage of multiple discounts and save money on both policies.
Consider potential increases when making a claim
Home insurance policies are designed to cover larger losses, including water, theft, fire damage, and more. As such, before submitting a claim, it is important to consider potential increases to your next condo’s insurance policy. Put simply, submitting multiple small claims can impact your upcoming home insurance premium – especially if you are already benefiting from a discount for being claims free.
Why is condo insurance important?
Condo insurance protects one of your most valuable assets along with all your cherished belongings against any situation, including water damage, theft, fire, and more. Condo insurance policies also cover you against potential lawsuits and identity theft, providing additional protection at an affordable rate. Condo insurance is particularly important, whether you are the property owner or tenant, and is ultimately designed to protect you, your loves, and the things you value most for years to come.
What is the difference between home and condo insurance?
Home and condo insurance policies have a number of essential coverages in common and are extremely similar. You might even be wondering what is the difference between them.
Unlike home insurance, condo insurance only covers your unit, including the contents in your unit, personal belongings, and liability coverage. Your condo corporation will typically round off your coverage, protecting any damage to your unit, and to the common areas of the building as well as the amenities.
Home insurance policies, on the other hand, protect you and the whole property, including liability, external structures such as sheds and gazebos, as well as everything in your home, ranging from appliances to furniture and clothing.
Shopping for condo insurance
Shopping for condo insurance can be overwhelming, especially as a first-time property owner. From understanding the different coverages, to comparing a number of quotes, YouSet understands it can get a little messy.
That’s why we created our automated platform powered by thousands of different algorithms to help you insure what you love most at an affordable price. YouSet’s online platform will compare condo insurance premiums from various insurers so you don’t have to, then you can customize your coverage and buy your policy online, all this in less than 4 minutes.
Now that you know what condo insurance is all about, including ways to save money on your premium and what is covered, you are ready to insure your condo unit! We hope we answered any questions you might have had about condo insurance policies, but if we didn’t, YouSet offers personalized support via phone, SMS, or email.
Shopping for condo insurance