Best Condo Insurance in Canada in 2021 | Unit Protection and Personal Effects Coverage

August 3, 2021 | Editorial Team

Condo insurance can provide cover for home and condo owners. One condo insurance quote may vary among providers. Most condo insurance policy coverage includes condo unit protection and personal effects coverage.

Do You Need Condo Insurance?

Owning a condo unit is different from having your own home. One major difference is that your ownership is on the condo alone and not the building it’s located in. The condo corporation’s insurance policy will only have coverage for the building and all common areas.

That’s why condo owners and tenants should consider getting a condo insurance policy of their own.

Insurance for condos can be similar to home insurance in some ways, but it does have differences. It can also differ depending on the province, so we bring you the posts about home insurance in British Columbia and Ontario for starters.

Similarities Between Home Insurance and Condo Insurance

Both condo and home insurance dwelling coverage guarantee costs for the repair or rebuilding of your unit or home dwelling. In the event that heavy storms, fire, and earthquakes hit, you’ll be eligible for these types of claims.

Both types may provide property coverage for the cost of repair, replacement, or for any loss or damage to your belongings. They must be stored within the unit or house.

Personal liability coverage is also one similar feature. It helps home, and condo owners pay for any legal or medical costs that arise from injuries sustained by guests while in your condominium unit or home.

Other similar coverage like additional living expenses or loss of income may apply depending on your particular insurance plan.

Differences Between Home Insurance and Condo Insurance

There is more than one difference between how these two insurance types. These mainly differ in the scope of coverage and the cost of insurance.

With regards to dwelling coverage, home insurance covers the inside and outside areas of your home. A condo corporation has its own master policy. It will be responsible for providing coverage for everything that’s outside your condominium unit.

Any needed repairs and replacement outside your unit door must be taken care of by the condo management. Meanwhile, your personal condo insurance will provide coverage for the interiors of your condo.

Liability coverage helps take care of any expenses for injuries sustained by your visitors while inside your condominium. Should they fall down the stairs and need medical attention, the condo management must take care of the matter.

What Factors Can Impact Condo Insurance Premiums?

Your condo insurance premiums will cost more or less, depending on several factors.

Your coverage limits and deductibles impact your premiums. These two are primary considerations when you take out a condo policy. You must determine how much coverage you need for your unit, belongings, and add-on benefits.

You also need to decide how much deductible you’re willing to set. Deductibles are amounts you need to cover first before your insurance company steps in to cover expenses for you. Hence, this amount must be reasonable so that you won’t be caught off guard in the event of loss or damage.

Personal belongings inside your condo impact the insurance cost. The more possessions you have, the greater cover you will need. Likewise, the more expensive your personal effects are, the greater cover you will need. These raise the cost of condo insurance premiums.

The condo building and its location impact your insurance payments. Premiums differ between cities or territories. And some questions come into play, such as, is the building reputed to be of good quality construct? Another question, is the building in proximity to areas with high crime rates? When the risks increase, so does the premium.

Additional cover impacts the cost of your condo insurance. Highly expensive assets can significantly raise the cost of your insurance if you need to add cover for them. Opting for new item replacement as a feature will also increase your premiums. Your plan must now provide new items to replace your old ones in the event of damage or loss.

Cover for additional living expenses will also impact your insurance premium. This particular cover helps pay for your expenses if you have to live somewhere else. Usually, because your condo is temporarily unlivable or being repaired.

Unit construction and upgrades also impact your monthly payments. Installing new furnishings like cabinets and hardwood floors raises the value of the coverage you need. Consequently, expect to pay a more expensive premium.

Things You Can Do to Get Cheaper Condo Insurance

Several measures enable you to get cheaper condo insurance. Below are some suggestions to consider.

Choosing Basic Coverage

The cheapest condo insurance provides basic coverage. And sometimes, that’s all you need. You just have to make a choice between higher coverage or lower insurance costs.

However, if you can strike a balance, that will be your best option. Look over different packages and bundles. Try to choose a plan that gives you the security you wish at a price that’s affordable.

Buying Multiple Policies from the Same Company

Why not purchase all your insurance products from the same company or insurance broker? Multiple policy purchases from the same provider often entitle customers to a discount. This means money back for you.

At times, insurance companies partner with different services or product companies. So be on the lookout for discounts and perks you can get by hiring a service or buying a product from partner companies. While these do not directly lower insurance costs, you still recover some amount of money in return.

Set a Higher Deductible Limit

Increasing your participation costs will lower your monthly insurance costs. Determine the amount you’re able to allow for covering initial costs. Do remember that emergencies may happen suddenly, so be sure to have funds ready for immediate spending in case a need arises.

If you do set a higher deductible limit and lower your insurance premium, why not save the deductible and keep it ready in case it’s needed.

Increase the Security Features of Your Condo

Making several improvements to the safety of your condo unit can make significant reductions to your insurance costs. Put secure locking mechanisms on the windows and doors.

Make sure to have a smoke, security, and a fire alarm that’s working well. Why not have your own fire extinguisher nearby? Also, consider fitting your appliances with surge protectors. When you lower the risks, you lower your insurance costs.

The Bottom Line

Condo insurance provides peace of mind and financial security. It’s similar to homeowner’s insurance. Dwelling coverage, liability coverage, and personal property coverage are essential to your plan. They must be present whenever you get a quote for your condo property.

It’s also important to inquire about discounts you can take advantage of, from multi-policy purchases to senior discounts.

As always, it’s important to make sure that a written policy provides all the coverage values you expect to benefit from. This way, you can make a rightful and sufficient claim when emergencies arise.