Are there additional insurance requirements for
condos?
Do condo owners need extra insurance? The one coverage most miss could cost you thousands.
Quick answer
Yes. Most condominiums carry building insurance through the condo corporation, but unit owners often need additional coverage. When we talk “Insurance & Risk” for condos, the gap between corporate insurance and owner responsibility is where most claims fail.
What the condo corporation usually covers
- Structure and common elements (roof, exterior walls, elevators).
- Liability for common areas.
- Building property coverage — but often not everything inside your unit.
This sounds safe. But corporate policies vary. Some policies cover fixtures inside your unit; many do not. That’s where owner risk grows.
What condo owners must insure
- Contents insurance: furniture, electronics, personal items.
- Unit-improvement coverage: upgrades like hardwood floors or kitchen renovations.
- Liability coverage: if someone slips in your unit and sues.
- Loss assessment / deductible reimbursement: if a claim on the building triggers a large deductible, the condo can assess owners.
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Common additional insurance requirements you’ll see
- Minimum liability limits: some boards ask owners to carry $1M or $2M liability.
- All-risk vs named-perils: all-risk covers more perils; named-perils is cheaper but narrower.
- Deductible responsibility: condo bylaws may require owners to reimburse their share of a building deductible.
Practical checklist to reduce insurance risk
- Read your condo declaration and bylaws. Look for wording on insurance, deductibles, and unit boundaries.
- Ask for the condo corporation’s insurance summary. Identify gaps in unit fixtures and improvements coverage.
- Buy a personal condo insurance policy that includes contents, improvements, liability, and loss assessment coverage.
- Consider higher liability limits and replacement-cost contents coverage.
- Review policies annually or when you renovate.
Why this matters — fast
When a pipe bursts, the building may fix the wall, but not your upgraded flooring. When a visitor is injured, your liability limit can protect your savings. When the condo passes a special assessment for a deductible, loss assessment coverage can save you thousands.
Next step — get precise, local advice
Condo insurance requirements vary by province, by building, and by board decisions. Don’t guess. Get a local expert to read your documents and recommend the exact coverages and limits for your risk profile.
If you want a clear, direct review of your condo insurance obligations and risk plan, contact a local realtor and insurance-savvy advisor: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Protect your unit. Close the gap between corporate coverage and personal risk. Act now.
