Compare Condo Insurance

There is no legal requirement to have home insurance in Canada. The requirements vary according to the province or territory. For instance, new laws in Quebec require that you have at least civil liability insurance. This is usually acquired through home insurance. This coverage is designed to protect other co-owners in the event of damage for which you would be responsible. As for the other coverages offered by insurance companies, there is no legal obligation to subscribe to them. Your declaration of co-ownership and its by-laws may still require that each co-owner have individual insurance.

Condominium insurance begins with liability coverage. This coverage, which is mandatory, must be for a minimum amount of 1 or 2 million dollars, depending on the number of units in your building. If you are at fault for a loss, the condo association can claim from you the cost of repairs to the parts it is responsible for insuring. The condo associaiton is the association of co-owners of your building, governed by a board of directors. Your insurance also protects the contents (appliances, furniture, clothing, electronics, etc.), as well as improvements made to the condo since its construction, such as renovating your kitchen. Finally, special assessments that the condo association may require in certain circumstances are also covered. In addition to these usual protections, several others can be selected à la carte, such as sewer backups.

Because it covers fewer items than home insurance, condo insurance is also less expensive. It is possible to find one for about $30 a month in Quebec, and as little as $20 in some Canadian provinces. The price can easily go up to $50 a month, depending on the coverage chosen and the risks associated with the location of your dwelling (for example, a neighbourhood with a lot of theft). However, in a condominium, there are two types of insurance: your individual insurance and the condo association’s insurance. You pay for this second insurance through your monthly condo fees.

In addition to your individual condo insurance, your condo association is required to insure the common portions of the building, as well as the original condition of certain private areas. The condo association’s source of financing is the condo fees it collects from each co-owner. A portion of these fees is used to pay for home insurance. For a condo association, purchasing this type of insurance is mandatory. The fact that you pay your share of this insurance does not exempt you from taking out an individual policy.

Title insurance is a different product than home insurance. It protects you against problems that could affect the title to your property, the document that certifies that you are the owner of your unit. For example, you move into your new condo and a few weeks later, a bailiff visits. You didn’t know it, but your home is subject to a construction mortgage. Some work has not been paid for by the contractor and the subcontractor now wants to exercise a right on your property. Title insurance can cover your legal fees to have this legal mortgage removed.

The minimum liability coverage is $1 million for buildings with 12 units or less, and $2 million for buildings with 13 or more units. Other coverages can be chosen according to your preferences. In sum, you need to cover a few categories, mainly: personal property, improvements (such as new kitchen cabinets), pro rata distribution (for a special assessment) and living expenses (if you have to move temporarily). You can then add several additional coverages. Each category has a specific limit, such as $40,000 for personal property, which refers to the contents of your home.

It is highly recommended that you compare several insurance policies using an online comparison tool before making your choice. You must fill out a questionnaire to receive quotes. It is very important to be honest at this stage. Do not lie about the property’s characteristics or your past claims. The insurer may call you to validate the information. Once you have made your choice, you can pay for your insurance monthly or in a lump sum. This type of insurance renews itself every year and you have the right to change companies when the contract expires.

Yes, condominium insurance is cheaper. With home or cottage insurance, you are responsible for everything. This means your insurer manages more risk and charges you a higher amount. Condominium insurance that you purchase individually excludes many potential damages, including those to common areas, except in certain cases (civil liability). However, in a condominium, you also pay a second home insurance policy, the condo association’s, to protect the common areas. Ask the board of directors or the manager of your building to find out the amount.

Yes, it is highly recommended that you protect yourself in case your tenants cause damage. If you rent your condo, call your insurance company to inform them of the rental, since you are responsible for any impact your tenant may have on your unit or your neighbours’ units. Your insurance company may impose conditions on your continued insurance coverage, such as requiring certain coverages and increasing your premium.

Fire damage is usually included in home insurance policies. With fire, as with any type of loss, some damage may be covered by your individual insurance policy, and some by the condominium corporation’s policy, depending on the areas affected (common or private). Your condo association is legally responsible for taking out an insurance policy for the building, and it usually covers fire. However, it could claim money from you if the insurer’s assessment shows that you are responsible for a fire. In this case, your personal insurance may cover the amount, as it is your liability.

It is important to ensure that you are protected against water damage as it is a common problem in condominiums. Water damage falls into more than one category. Some are part of the basic condominium insurance coverage, while others are not. The condominium association’s insurance will pay for some of the work required as a result of water damage that affects several units. However, any improvements you made to your unit, for example, will be covered by your own insurance. In addition, if you are responsible for the damage, your individual insurance will also be involved. Some water damage may not be included in your policy, but you can claim it as excess coverage, such as sewage and river overflow.

If you live on the main or first floor of a condominium, yes, you need sewer backup insurance. On higher levels, this coverage is less important, as your chances of being a victim of such an event are lower (but not zero). As with any loss, the costs are split between insurance for the common areas (underwritten by the condo association) and the private areas (your individual policy). For example, the insulation of walls that have been soaked will probably be covered by the condo association’s insurance, while your temporary move and the replacement of your furniture will be covered by your individual policy