Condo Insurance for Newcomers to Canada
You’re bought a condo and now you need to insure it as a newcomer to Canada. Did you know? Condo insurance is a type of home insurance for the inside of your unit, such as walls and floors, and its contents.
Condominium insurance will also cover any improvements that you will make to the unit you own.
Western Financial Group, a 100% Canadian company, can help you navigate your condo, home, tenant, travel, and car insurance as a newcomer to Canada.
Let’s answer your top questions about condo insurance
What is condo insurance in Canada?
The insurance provided by your condo corporation, which may also be known as a strata corporation, condo association, or syndicate of co-owners, typically covers the main building, including exterior walls and roof for example, and common areas, such as hallways and exercise rooms.
When it comes to your belongings, such as your furniture and clothes, any renovations, inside condo walls, and loss assessments, your condo building's insurance coverage does not apply.
You’ll need to figure out how much coverage you’ll need to cover your belongings and if you are going to make any improvements to the condo unit you have bought. A Western Financial Group condo insurance expert will answer your questions on how to insure your condominium at the right value for you.
The most important thing about condo insurance
You will have two separate insurance policies: Your personal condo insurance and your condo corporation’s (building’s) master policy.
How much is condo insurance in Canada?
Yearly condo fees in Canada vary greatly and they can range from $600 to $12,000 or more annually, meaning monthly fees between $50 and $1,000 and more. Factors influencing condo fees include the size of the condo building, building amenities, location, and the age of the building, and what repairs need to be done.
Can I own a condo in Canada without being insured?
Yes, you can because condo insurance isn’t mandatory in Canada. If you are financing your condo, though, you can expect your lender to require that you purchase condominium insurance.
Even if you don’t have a mortgage, you are risking your personal belongings. Can you afford to take that financial risk?
Note that: A condominium corporation must maintain property insurance, on its own behalf and on behalf of all unit owners, for damage to the units and common elements that is caused by major perils or any other perils that are specified in the corporation's declaration or bylaws. This coverage is paid for through your condo fees, but it does not extend to your personal property.
Am I required to contribute to the condo association’s condominium fees?
Yes, you are. These fees, also known as condominium contributions, are mandatory payments made by all condo owners. They cover various shared expenses such as maintenance, repairs, insurance, administration, and utilities for the common areas of the condo building or complex.
If you don’t pay your condo fees, your condo association can take legal action against you, including interest charges, lawsuits, filing a caveat on your property title, or even foreclosing on your unit.
What does my own condo insurance cover?
Your condo insurance generally covers your personal belongings, any improvements or renovations, interior walls, ceilings, floors, and fixtures within your unit. This structural coverage typically includes the parts inside your unit's boundaries, often referred to as improvements and betterments, and can cover damage from covered perils such as fire, water leaks (burst pipes), and theft.
Note that the exterior building walls or other common elements are insured by the condo corporation's master insurance policy.
What is a loss assessment?
A loss assessment in a condo building is a charge levied by the condominium corporation against individual unit owners to cover costs related to damage or liability that exceeds the coverage of the condo's master insurance policy. This can happen when a covered event, like a fire or a liability claim, causes damage to common areas or injuries, and the cost of repairs or settlements exceeds the insurance policy's limits.
How is water damage covered in a condo building?
It’s covered under your individual unit owner's insurance policy: This is your personal insurance, designed to protect what the corporation's policy doesn't. This includes your personal belongings (furniture, electronics, clothing), any improvements you've made to your unit beyond the "standard unit" (think upgraded flooring, custom kitchen cabinets, renovated bathrooms), and importantly, liability if damage originating from your unit affects others.
The condo corporation typically covers damages, such as water, to common areas, while unit owners are usually responsible for repairs within their units.
Does condo insurance for my unit include personal liability coverage?
Yes, condo insurance for your unit includes personal liability coverage. This type of coverage protects you if someone is unintentionally injured or has their property damaged while in your condo unit and you are held legally responsible or you are facing a lawsuit for damages. The liability coverage will help pay for legal fees, medical expenses, or damages awarded up to the policy limit.
Common condo terms useful for newcomers to Canada
Condominium
A type of property ownership where owners hold title to their individual units and share ownership of common property with other owners.
Common elements/common property
Areas and facilities shared among all condo owners, such as hallways, elevators, landscaping, plumbing, and fitness centers. These are jointly owned.
Condo corporation/condominium corporation
A legal entity which manages the property and its assets through an elected board representing unit owners.
Declaration of co-ownership
A legal document setting out condo ownership terms, responsibilities, and common expense sharing.
Bylaws
Rules adopted by the condo corporation governing the use of units and common elements, as well as operational issues.
Reserve fund/contingency fund
Money set aside by the condo corporation for major repairs and maintenance of common property.
Unit factor/common interest proportion
A percentage indicating each unit's share of ownership in the condo corporation, often used to determine common expenses and voting rights.
Condo fees
Mandatory contributions collected from owners to cover expenses like maintenance, utilities, insurance, and management. They are often paid monthly.
What are common mistakes to avoid when buying condo insurance as a newcomer?
- Too focused on lowest price at the expense of coverage
- Not understanding how condo insurance works
- Not comparing multiple condo insurance quotes
- Settling for the first quote
- Overlooking policy exclusions
- Not reading your condo insurance policy
- Underinsuring your personal belongings in your condo to save money
- Not bundling your condo and car insurance
- Not asking for discounts on condo insurance where applicable
- Not asking questions about your condo insurance policy
Avoiding these mistakes will help you get the right condo insurance coverage as a Canadian newcomer. A western Financial Group condo insurance expert will help you with your condo insurance.
Advantages of buying condo insurance with Western Financial Group as a newcomer to Canada
- Western is a national insurance broker partnering with Canada’s leading insurance companies to get you insurance to help save you money.
- Western will get you multiple quotes for you to choose from to meet your coverage needs.
- Western will help you bundle your condo or home and car insurance to save.
- Western puts you, the customer, first.
- Western has been in the insurance business for over 100 years!
- We are 100% Canadian and we know the Canadian market.
How to reach us
You can reach a Western home insurance expert by phone, text, or email. Fill out our form and get a quote for your condo/home insurance needs (and all your insurance needs).
Speak to one of our insurance experts now: 1-866-860-1958.
Final thoughts
Your condo is going to be your castle in Canada. Protect your unit and your personal belongings with condominium insurance.
Condo insurance protects your belongings and your investment in your condo unit. Are you prepared to take the risk of having your condo uninsured as a newcomer to Canada?
5 condo FAQs
Are improvements or upgrades I make to my unit covered by my condo insurance?
Yes, your condominium insurance for your unit usually provides specific coverage for improvements and betterments you’ve made, such as new flooring, custom cabinetry, or upgraded appliances, which aren’t covered by the condo corporation’s policy. Western Financial Group can help you get condo insurance for your personal belongings.
Do I need condominium insurance if my condo building already has insurance?
Yes, you should have condo insurance but it isn’t mandatory in Canada. The condo corporation’s policy usually only covers the buildings and common areas, not your personal belongings, unit improvements, your personal liability, or deductible assessments that could be passed on to you as a unit owner.
Are there special coverages unique to condo owners?
Yes, in addition to personal property and liability, condo insurance may provide loss assessment coverage (if you must pay for damage to common areas), corporation deductible coverage (if you are charged a share of the condo corporation’s insurance deductible), and protection for unit improvements.
What are the common exclusions in condo insurance policies?
Flooding and earthquake damage: Standard condo insurance does not cover floods or earthquakes. Separate policies or add-on insurance policies are required for these perils.
Sewer backup and water damage: Coverage for sewer backup, overland water, or water seepage may be excluded unless specifically purchased as add-on insurance.
Mould, wear and tear: Damage caused by mold (unless from a covered peril), gradual wear and tear, corrosion, and poor maintenance are not typically.
Damage from Insects, rodents, and Vermin: It’s excluded because infestations or damage by pests are considered preventable through routine maintenance.
Intentional or criminal acts: Any intentional or illegal acts are excluded.
Ordinance or local bylaws: Costs due to changes required by local building codes or bylaws after a loss are often not covered by the standard condominium policy.
What's the most important thing to know about condominium insurance in Canada?
You will have two separate insurance policies: Your personal condo insurance and your condo corporation’s (building’s) master policy. Your personal policy protects your belongings, personal liability, unit improvements, and your share of certain building losses. The master policy only covers the structure (roof, foundation, and exterior walls, for example), and common areas.
