Why Condo Insurance Matters
When it comes to condo living, many owners assume their condo fees cover everything—including insurance. But that’s not entirely true. Before diving into the benefits of condo insurance, it’s important to understand that there are two different types of condo insurance policies:
- The Condo Corporation’s Insurance (Master Policy)
This policy is mandatory for all condo corporations and is designed to protect the building’s structure and common areas. It typically covers:
– The building’s exterior, roof, windows, and foundation
– Common areas like hallways, lobbies, and elevators
– Shared systems, including HVAC, security cameras, and boilers
– Liability coverage if someone is injured in a shared space and sues the condo corporation
While this policy is essential for protecting the overall building, it does not cover everything inside your individual unit—and that’s where personal condo insurance comes in.
- The Condo Owner’s Insurance (Your Policy)
A personal condo insurance policy protects you and your unit from risks like:
– Water damage, fire, and smoke damage
– Theft and vandalism affecting your personal belongings
– Liability if someone is injured inside your unit
– Additional living expenses if your condo becomes unlivable
– Loss assessment coverage, which can help pay for costs passed down by the condo corporation
Did you know that your personal liability coverage can protect you anywhere in the world? If you accidentally cause bodily injury or property damage, your condo insurance may cover the costs—even outside your home.
Loss Assessment: A Hidden Risk for Condo Owners
One of the biggest benefits of condo insurance is loss assessment coverage, which typically provides at least $25,000 in protection. If you’re not familiar with this term, check out our detailed Loss Assessment Blog to learn more.
What If You Don’t Have Condo Insurance?
If you live in a condo without personal insurance, here are a few critical questions to consider:
If a guest slips and falls inside your unit and sues you for medical expenses, do you have thousands of dollars to cover it?
If someone breaks into your condo and steals your laptop, TV, or jewelry, could you afford to replace everything out of pocket?
If a fire or flood forces you to move out, where would you stay—and how would you pay for temporary housing?
What if a leak from one of your appliances damages your unit and the units below? Could you afford to cover those repair costs?
If you rent out your condo and your tenant has to move out due to damage, who will cover your lost rental income?
What if your condo corporation charges unit owners for a common area repair (loss assessment)? Many condo corporations don’t have enough financial reserves to cover large losses, meaning the cost could be passed down to you.
Condo Insurance: A Small Price for Big Protection
Compared to home or auto insurance, condo insurance is one of the most affordable types of coverage—yet it can save you from devastating financial loss. Every condo owner should have a policy to protect their home, belongings, and financial well-being.
