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How Does Condo Coverage Work?

How Does Condo Coverage Work?

Did you know that condo insurance is slightly different than the coverage you get for your home? There are a number of key differences that every condo owner should know before purchasing insurance for their new unit. Below we’ve outlined the most important points about condo coverage, and where you can find the best rates and terms.

Two Portions Not One

Condo insurance has two separate components, not just one. The first part is the personal insurance potion that you will pay for. It covers and protects you and the interior of your unit. The second component is the master policy that the condo corporation puts in place to cover the common areas and building, such as the windows, parking lots, swimming pool and roof. In some cases, the master policy will also provide coverage for your unit’s original construction and fixtures. So it’s important that you understand the terms of the master policy to determine exactly how much coverage you will need to purchase on your end.

Coverage Limits and Costs

With homeowner’s insurance, the amount of coverage required is based on how much it would cost to rebuild the home from scratch. Condo coverage, on the other hand, has much lower coverage limits because it only considers the contents, unit upgrades and liability, not the replacement value of the building.

Additional Protection Options

Since your personal condo insurance only covers your unit, you won’t need to add any additional riders to cover other structures like a shed. The condo corporation’s policy will cover the building and any other structures such as the pool or landscaping. However, it often will not cover your locker. Other coverages that may not be included are sewer backup and overland water, something you might want to consider adding if you’re moving into a townhome or a lower-level unit. Some insurance policies also have a cap on coverage amounts for personal property. If you would like to add more coverage, an additional rider or endorsement can be added for occurrences not covered by the standard condo insurance policy.

Condo policies can differ from one insurance company to the next. Whether you’re moving into a high rise, low rise or townhome, our team at Rowat Insurance will work with you to find the right coverage for your needs. We work with all of Canada’s most trusted insurance companies and have access to all the best rates and terms available today.

Rowat Insurance

Insuring Ontario and Quebec since 1955. Trust Rowat Insurance Brokers to look after your home, auto, business and life insurance needs. We always guarantee fast, friendly service and highly competitive premiums. As brokers, we are entirely independent from Insurers and Financial Institutions; we will work with you to analyze and advise on risk, and customize the coverage that is right for you.