Even though your condo is part of a larger building with insurance of its own, condo insurance will make sure what’s yours is protected.
As a condo owner, you’re purchasing a unit that is part of a larger building. Insuring the dwelling or structure of that building isn’t your responsibility as the condo association has a policy to cover that property.
However, the condo association’s policy stops where your unit begins. Your condo insurance is a type of homeowner’s coverage for the inside of your unit and its contents. Besides covering your personal belongings, it will protect things your condo association doesn’t insure, like your fixtures, flooring, or any modifications you make to the condo.
You need condo insurance if you belong to a condominium association. If you’re in the process of buying a condo, the association will verify that you have a policy that meets their requirements before closing the sale.
Anyone who owns a condo needs this type of coverage. Purchasing a unit is an important investment, and you need to protect this asset with the right insurance.
If you’re buying a condo with a mortgage you will be required to have condo insurance.
Condo insurance will provide you with peace of mind and better financial protection.
In the event of a fire, flood, or burglary, your personal policy will replace any stolen or damaged items. You will also get personal liability coverage that protects you from a costly lawsuit in case someone sustains an injury in your condo unit.
Here are some factors that can lower your condo insurance policy premiums:
Condo coverage varies from one condo corporation to another, so it’s important to get that information from the condominium association when you’re looking at purchasing. Then you’ll have a good idea of where your own condo insurance needs to fill in and our insurance brokers can help you find the best policy for you.
Some policies will cover temporary living expenses if you need to evacuate, or your unit becomes uninhabitable due to a claim. The best condo insurance has add-on options for improvements and betterments as well as loss assessment coverage or even more depending what kind of coverage you’re looking for.
Communal living comes with added risk. If you cause a loss, you’re more likely to affect the people living around you – or even the entire building. And if you’re found responsible for the loss of the entire building, it could leave you in financial ruin. You get $2 million automatically in personal liability coverage to protect you when you’re at fault, or when you’re deemed responsible for property damages or injuries sustained by others, but you’ll want to check with the condo board or your mortgage company to see if there’s a minimum of liability coverage required by them.
Liability coverage is the bare minimum amount of coverage you can have for a property. Your condo board or lender will probably require more, but you’ll want to check with both to see if there’s a minimum of liability coverage you need. Liability is your legal responsibility to pay for damages and medical expenses if someone gets hurt on your property.
Condo insurance covers the costs to replace or repair property within your unit. You may be able to file a complaint if a pipe bursts and causes water damage. Or if a hailstorm breaks your window and ruins part of your unit or private outdoor areas.
You can elect specific amounts of coverage for the personal property you keep in your home. This amount will depend on what type of personal property you have, such as fine jewelry and electronics. You’ll need to estimate what it would cost for you to replace your personal belongings for your insurance agent.
It’s important to adjust this coverage as the value of your personal items changes. For example, if you buy a computer, more electronics, or fine art.
Improvements and betterments are upgrades and enhanced features you’ve added to your unit since you’ve owned it. This portion of your insurance policy also covers upgrades made to your unit by any previous owners.
Most builders of condominiums provide standard features to owners that are covered in the base selling price of the unit. When owners decide to add upgrades during the building process or after they’ve moved in, insurance policies need to account for the unit’s increased value.
A home with upgraded kitchen appliances, cosmetic improvements, and other features that aren’t found in other units often justifies a higher resale price. Consequently, if your unit sustains damage or is destroyed, your policy will need to reimburse you accordingly. A policy typically covers what it would cost you to find a similar replacement home with identical or “like” features.
While your condo association takes out a master policy for the entire building covering hazards to the exterior and common areas, it may not be enough. This is where contingent and loss assessment coverage comes in. As an individual unit owner, you will get this important coverage included in your policy with the option to increase the automatic amounts of coverage if needed.
The added coverage helps you pay for damages and losses to areas that impact your unit that would normally fall under your association’s coverage.
This coverage is there for you to help with assessments made against you by your condo board where the damage does not exceed the condominium board’s deductible. This coverage is provided automatically with a base coverage, check with your condo board to see what their deductible is and additional coverage can be purchased to top your policy up if needed.
The price range for condo insurance is fairly wide because there are many different factors that insurance companies look at to calculate your premiums.
Your insurance company might set a higher premium based on the following things:
Purchasing your condominium insurance policy through a broker makes things easier. Our brokers can help you find the best condo insurance for your budget, and they can also assist you if you ever need to file a claim.
We have many years of experience working with condo owners and can help you review what your condominium association’s policy protects and identify the areas your personal condo policy should cover. We’ll help you find the best rate for your condominium insurance policy and provide additional assistance if you ever need to file a claim or have questions.
If you prefer in-person or over the phone, you can always chat with one of our account executives.
I had an exceptional experience with Dan at Knight Archer Insurance. He was knowledgeable, patient, and went above and beyond to ensure I understood my options. His customer service is top-notch, making the process smooth and stress-free. Highly recommend Dan for anyone in need of insurance services!
Andrew Pearce
The team is very good at Knight Archer Insurance, I visited that place first time and it's totally new place for me (New Immigrants In Canada) they explained everything with very easy way and gave me some extra knowledge about the future process as well.
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I went to this Knight Archer office to get a few important documents notarized. I was received by a staff at the counter and transferred my request to an official who dealt with my request. The notary who helped me with my documents provided me with the best service I've ever received thus far in Canada. She was very much courteous with the service and I just want to point out that Knight Archer staff does very well treating their customers. I appreciate it very much and encourage the management to continue doing the same.
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