Condo insurance (also called unit-owner insurance, or strata unit-owner insurance in BC) fills the gap between what the condo corporation’s master policy covers and what the owner is personally responsible for. It works differently from a homeowner policy because the building belongs to the corporation, not to you. The guide to home insurance in Canada covers the policy basics that apply to both.
What the condo corporation’s master policy covers vs what you need
| Coverage area | Condo corporation | Your condo policy |
|---|---|---|
| Building structure (exterior, roof, foundation) | Yes | No |
| Common areas (halls, lobby, gym) | Yes | No |
| Standard unit finishes (as originally built) | Usually | No |
| Your upgrades and improvements | No | Yes |
| Your personal belongings | No | Yes |
| Personal liability | No | Yes |
| Loss assessment | No | Yes |
| Additional living expenses (if displaced) | No | Yes |
Where the line falls between “standard unit” and “improvement” is set by the corporation’s declaration and bylaws, so the same kitchen upgrade can be the corporation’s responsibility in one building and the owner’s in another.
What condo insurance covers
1. Personal property (contents)
Covers furniture, electronics, clothing, appliances and other belongings against theft, fire, water damage and other covered perils.
The right contents limit is what it would cost to replace everything you own at today’s prices. A room-by-room inventory, with photos and receipts where you have them, is the practical way to set it, and it also speeds up a claim.
2. Unit improvements and betterments
Covers upgrades beyond the original standard finishes: hardwood floors, a renovated kitchen or bathroom, custom closets. This includes upgrades made by a previous owner, since the corporation’s policy covers the unit only as the standard unit is defined in the corporation’s documents. The improvements limit should reflect what it would cost to redo those upgrades at current contractor prices.
3. Personal liability
Covers you if someone is injured in your unit or you accidentally damage someone else’s property, for example a leak that runs into the unit below. The limit is chosen on the policy.
4. Loss assessment coverage
This is the part of condo insurance owners most often misunderstand. When a major loss hits the building (a water leak, a fire), the master policy’s deductible applies first. Depending on the provincial condo law and the corporation’s bylaws, the corporation can charge that deductible back to the owner of the unit where the loss started, or spread it among all owners as a special assessment. In Ontario, for example, the Condominium Authority of Ontario notes that corporations may have by-laws making owners pay the corporation’s deductible in some situations even where no one is at fault.
Master policy deductibles differ widely between buildings, so the number to check is your own corporation’s deductible, which is on its insurance certificate. Without loss assessment coverage, an owner can receive a bill for the whole deductible. In BC, a strata’s earthquake deductible is often very large and a share can be passed on to owners; the BC home insurance guide covers that gap.
5. Additional living expenses
If the unit becomes uninhabitable after a covered loss, this pays for a hotel, meals and other extra costs while repairs are made.
How much condo insurance costs
| Factor | Impact on cost |
|---|---|
| Location (province, city) | Prices vary by province, city and building |
| Unit size and improvements | More improvements, higher premium |
| Contents coverage amount | Higher limit, higher premium |
| Loss assessment limit | A higher limit costs more |
| Deductible | A higher deductible lowers the premium |
| Claims history | Previous claims raise premiums |
| Building age and claims | Older buildings with frequent claims cost more |
No government body or regulator publishes average condo insurance premiums, and the one survey this site uses for home premiums does not cover condos, so this page does not give a price range. For survey figures on house premiums by province, see average home insurance costs in Canada.
How to choose condo insurance
Coverage levels to aim for
| Coverage | Common target |
|---|---|
| Personal property | Full replacement cost of your belongings |
| Improvements | Full cost to restore your upgrades |
| Personal liability | A limit chosen with your assets in mind |
| Loss assessment | At least the corporation’s deductible |
| Additional living expenses | Enough for several months of alternative housing |
Documents to read first
- The corporation’s insurance certificate or master policy: what is and isn’t covered.
- The master policy deductible: this sets how much loss assessment coverage makes sense. It can change at each renewal, so it is worth checking every year.
- The bylaws: some make owners responsible for the deductible when a loss starts in their unit.
- The declaration or standard unit description: defines what counts as the corporation’s “standard unit” and what counts as your improvement.
Common condo insurance claims
| Type | Common cause |
|---|---|
| Water damage | Burst pipe, dishwasher leak, toilet overflow |
| Fire and smoke | Kitchen fire, electrical fault |
| Theft or break-in | Stolen electronics, jewellery |
| Liability | Guest injury, water damage to the unit below |
| Loss assessment | Building-wide claim, deductible charged to owners |
Water damage can come from your own unit or from water that comes through from another one.
Condo owners who rent out their unit
An owner who rents the unit to a tenant needs a policy written for a rented condo unit rather than an owner-occupied one, and the tenant needs their own tenant insurance for their belongings and liability. The owner’s policy still carries the improvements and the loss assessment coverage.