Home insurance can provide owners with the peace of mind they need. It feels good to know your living space and the possessions inside are protected. Unfortunately, many condo buyers are unsure of whether to purchase insurance. If you fall into this camp, you may be wondering whether you really need coverage, above and beyond what your condo corporation is providing. Can you get by without it?
In this post, I’ll provide some clarity around condo insurance by laying out the facts…
Your condo corporation’s insurance
Your condo corporation is obligated to hold insurance on your behalf with regard to common elements and damage caused by major perils. The latter refers to events such as fire, lightning, hail, and vandalism.
It’s important to note that none of this pertains to improvements—so if you’ve done any remodeling, it won’t be covered (regardless of the cause of damage). What will be covered is any damage to the “standard unit.” What that constitutes will almost certainly be laid out as a condo corporation bylaw. There you’ll find all of the unit components that aren’t considered improvements (and are therefore covered).
Separate condo insurance
While the coverage from your condo corporation is helpful, it’s also minimal. If you buy outside insurance, you can expect it to guard against a far wider range of issues.
First off, your insurance will cover improvements made to your unit, along with the personal property inside. That can include appliances, furnishings, fixtures, your clothing, and more. You’ll also be covered in case of loss assessments.
Loss assessments occur when a condo corporation’s master insurance policy doesn’t have enough coverage for damage to shared property (or the deductible is very high). Condo owners may be tapped to make up for these shortfalls, but your insurance can protect you from them. It should also cover additional living expenses if you need accommodations due to an event that makes your unit unlivable (i.e. fire damage).
Lastly, insurance can protect you against liability for any physical injury or property damage sustained by other people.
Should you buy condo insurance?
Okay, let’s start by answering the big question. Condo insurance isn’t mandatory. That said, if you have a mortgage lender, you’re going to need it. Just as importantly, it can eliminate a back-of-your-mind stressor.
Your unique needs require personalized coverage. Talk to your preferred provider to work through what you need. For example, you’ll have to decide on an appropriate level of coverage for your belongings. If you need help finding a reputable local insurance provider, ask your real estate agent—they’ll have the connections to find someone credible.
Searching for the right condo? I can answer all of your questions. Call or text me at 416-500-5360, or send me an email at rashid.notash@rogers.com and ask away!
