What is Condo Insurance & How Does it Work?

It feels good to know you’re covered, no matter where you live. If you own a condo, condo insurance can provide that sense of comfort and confidence. Condo insurance is a home insurance product offered by TD Insurance that provides coverage for your personal belongings, as well as any improvements made to the unit you own. Rely on us for liability and Additional Living Expenses coverage that can help you be ready for the unexpected.

Condo Insurance Explained

Condo insurance is coverage that can be invaluable if you’re a condo owner facing unexpected expenses.

The insurance provided by your condo corporation (also known as a strata corporation, condo association or syndicate of co-owners) will generally cover the main structure and common areas, but some items are considered your responsibility. When it comes to things like unit improvements, loss assessments, and belongings, your building's coverage is unlikely to apply. Having condo insurance allows you to cover important stuff inside your actual unit. Our Global Amount Coverage is designed to fill these gaps. We'll work with you to determine an appropriate limit for your belongings and then provide 10x that amount of coverage as a single limit, covering unit improvements, loss assessments, as well as additional living expenses.

Having a policy dedicated to your condo protects you in more situations than the condo corporation’s coverage can offer and can protect you beyond the walls of your unit. It’s a home insurance solution you can lean on when faced with the unexpected.

Terms Worth Knowing

Here’s a helpful guide to terms that are worth knowing when dealing with condo insurance:

All-Risk coverage is for your belongings in your unit along with improvements and betterments made to your unit. This coverage protects you against losses from all risks (or perils), unless specifically excluded from your policy. (For example, if your upstairs neighbour’s pipes burst and flood your living room, your insurance will cover the damage.)
Personal Liability coverage protects you financially if someone is unintentionally injured or has their property damaged at your residence and sues you for damages to repair that harm. (For example, if someone has a slip-and-fall in your unit, breaks their leg and now cannot work for a period of time.)
Replacement Cost means that in the event of a claim, items would be repaired to their original condition or replaced with new items of like kind and quality with no deduction for depreciation. (For example, if your couch is ruined when your neighbour’s pipes burst, you will get a new couch.)
Additional Living Expenses Coverage will help you pay for additional costs that are both necessary and reasonable in a situation where you are forced to leave your home following a covered loss. (For example, hotel and food costs.)

There are a lot of terms that are used in insurance that you might not be familiar with. Don’t worry, we’ve got you covered. Visit our helpful glossary that explains what these frequently used terms really mean.

Is the average condo insurance cost higher if I live in a city like Toronto or Vancouver?

Potentially. Where you live will likely have an impact on your condo insurance, although there’s no blanket rule. Your location is just one of the factors that can determine your premium. Things like the value of your personal belongings and past claim history can also shape the cost of your insurance.

Why is Loss Assessment coverage important?

Loss Assessment coverage is an important feature of condo insurance because you share in the responsibility with the other condo owners for the condominium building and common areas. That means that if there is a special assessment (an added fee that is on top of your monthly condo fees) levied on your condominium building, all the condo owners must split the cost of the assessment. (For example, if a common area such as a parking garage is damaged due to flooding.)

What about my storage locker? Is that covered by condo insurance?

Yes. Whether your belongings are stored in your condo unit or another part of the building (like a storage locker), your valuables are protected with condo insurance.