Your Guide to Condo Insurance

October 8, 2024

What insurance do you need if you live in a condo unit? Condo corporations have insurance that generally covers the entire building, including the structure and common areas. This coverage is paid for through your condo fees, but it does not extend to your personal property.

You will still need condo insurance to protect your belongings. Condo Insurance provides protection for both personal property and liability.

What you need to know about getting condo insurance:

Personal property: Your belongings, like furniture and electronics, are not covered by the building’s condo insurance.

Interior coverage: Any improvements or renovations you’ve made to your unit may not be covered by the building’s insurance. Water damage from a broken pipe or any other events that can harm the interior, like drywalls, flooring, wiring or kitchen cabinets and may not be covered by the condo corporation’s insurance.

Liability protection: If someone gets injured in your unit, you’ll need liability coverage to protect you from potential lawsuits.

Loss assessment: If your condo association faces unexpected expenses, loss assessment coverage can help cover your share.

If there is a claim made against your condominium corporation or major damage to common areas such as a pool and it exceeds the corporation’s liability coverage limit, you and the other condo owners may be held legally responsible and may have to pay special assessments for the repairs.

Owning a condo is a bit different than owning a house and your condo insurance policy will be different as well.

Condo owners should consider the following types of insurance:

Condo insurance: This policy covers your personal belongings, interior walls, and improvements made to your unit. It typically also provides liability coverage.

Master policy: Check your condo association’s master policy, which usually covers common areas and the building's structure. Understanding what it covers can help you determine what additional coverage you might need.

Liability insurance: This protects you in case someone is injured in your unit or if you accidentally damage someone else's property.

Personal property insurance: This covers your personal belongings, such as furniture and electronics, against theft or damage.

Loss assessment coverage: This helps cover your share of a special assessment made by the condo association for damages to common areas or liabilities.

Flood Insurance: If you live in a flood-prone area, consider purchasing a separate flood policy, as standard condo insurance may not cover flood damage.

Umbrella insurance: For additional liability coverage beyond what your condo insurance provides, an umbrella policy can be beneficial.

Having your own condo insurance policy ensures you're fully protected in case of events like theft, fire, or water damage. It’s a smart way to safeguard your investment and personal property.