What is Condo Insurance & How Does it Work?

It feels good to know you’re covered, no matter where you live, or whether you rent or own. 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 or betterments made to the unit you own. It also includes Liability protection and Additional Living Expenses coverage that can help you in the event of 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 your belongings, unit improvements/betterments, and loss assessments, your building's coverage is unlikely to apply. Having condo insurance allows you to cover the important stuff inside your actual unit. Not sure how much coverage you need? We'll work with you to determine your contents coverage requirements. And we'll provide you with 10x that amount through our Global Amount Coverage as a single limit, to protect the things that need coverage in your unit.

Having a policy dedicated to your condo protects you in more situations than the condo corporation’s coverage, 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 floods 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 and breaks their leg.)
  • Replacement Cost means that in the event of a covered 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 be reimbursed the amount you paid to replace the couch you had.)
  • 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, temporary accommodations 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.

What is Loss Assessment coverage and why is it important?

Loss Assessment coverage is an important feature of your coverage that's typically included in condo insurance policies to protect you from out-of-pocket expenses related to a covered claim in regards to damaged common property. For example, if a shared common area in your condo building (i.e., lobby, parking garage, elevators, etc.) is damaged and the cost of repairs (including the deductible) exceeds the condo association's coverage limit, the balance owing may be split amongst the condo unit owners. Loss assessments can be charged to condo owners if the condo corporation's governing rules allow for it and in the event the corporation has no or insufficient coverage. Loss assessment coverage is important because it protects you from having to pay unexpected fees imposed by the condo corporation as a result of loss or damage caused by a covered risk under your policy.

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

Yes. Whether your belongings are stored in your condo unit or a personal storage locker located elsewhere in the building, your valuables are protected from insured risks/loss with condo insurance.

How do I get my condo insured?

If you're new to TD Insurance, getting started is easy. You can get a quote online in minutes! If you're already a TD Insurance customer, you can review and manage your policy online via MyInsurance.

Still have questions? Our TD Insurance Advisors can help. Get in touch with a TD Insurance Advisor today.

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The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence. Please speak to an Advisor or consult your policy wordings for further details.