Condo insurance
Condo insurance in Ontario
If you own a condo, two policies protect you: the condo corporation's master policy on the building, and your own unit policy on everything inside it. Knowing where one ends and the other begins is what keeps you from an expensive surprise after a claim.
What your condo unit policy covers
A condo unit-owner policy is built around the things the building’s master policy does not touch. It typically covers your personal belongings, your personal liability, additional living expenses if your unit becomes uninhabitable after an insured loss, and the improvements or upgrades you have made inside your unit.
That last piece — often called betterments and improvements — matters more than most owners expect. If a previous owner or you replaced builder-grade finishes with hardwood, quartz counters, or a renovated bathroom, the master policy usually insures only the original standard-unit finish. The difference is yours to insure.
- Contents and personal belongings, on or away from the unit
- Betterments and improvements beyond the standard unit
- Personal liability if someone is injured in your unit
- Additional living expenses during a covered displacement
- Loss assessment and the corporation deductible (see below)
The corporation’s master policy — and where it stops
Under Ontario’s Condominium Act, 1998, the condo corporation must insure the building and common elements against major perils, generally to a defined standard-unit level set out in the corporation’s by-laws. That covers the structure, the common areas, and the base finishes of each unit as originally built.
What the master policy does not cover is your contents, your liability, your upgrades, or your living costs after a loss. Read your corporation’s standard-unit by-law: it is the line that tells you exactly what the building insures versus what you have to.
Loss assessment coverage
When a loss to the common elements exceeds the master policy limit, or the corporation faces a shortfall, it can levy a special assessment against every unit owner to make up the difference. Loss assessment coverage on your unit policy is designed to respond to your share of that assessment, up to the limit you carry.
Because a single large common-element claim can translate into a four- or five-figure assessment per unit, this coverage is worth understanding before you need it. Limits vary, and you can usually increase them.
The deductible gap most owners miss
Master policy deductibles are often large — and for water damage in particular they can run into the tens of thousands of dollars. Under the Condominium Act, when damage originates in or is the responsibility of your unit, the corporation may charge that deductible back to you, up to the lesser of the deductible or the cost of the damage.
A "condo corporation deductible" endorsement on your unit policy is meant to cover that charge-back. Given how high water-damage deductibles have climbed in many Ontario buildings, confirming you carry enough of this coverage is one of the more practical things a condo owner can check.
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Frequently asked questions
Is condo insurance mandatory in Ontario?
There is no law requiring a condo owner to hold a unit policy, but your mortgage lender will almost always require it, and your condo corporation may require proof of coverage in its declaration or by-laws. Even where it is not required, going without leaves your contents, upgrades, liability, and the corporation’s deductible uninsured.
What is the difference between my policy and the condo corporation’s?
The corporation’s master policy insures the building, the common elements, and the original standard-unit finishes. Your unit policy insures your belongings, your upgrades, your personal liability, your living expenses after a loss, and your exposure to special assessments and the corporation’s deductible. They are designed to fit together, not overlap.
What does loss assessment coverage actually pay for?
If the corporation levies a special assessment on all owners — for example, to cover a loss that exceeds the master policy or to fund the master policy deductible — loss assessment coverage responds to your share, up to your limit. It does not pay for routine maintenance or reserve-fund top-ups.
Who pays the condo corporation’s deductible?
When damage originates in or is the responsibility of your unit, the Condominium Act allows the corporation to charge its deductible back to you, up to the lesser of the deductible or the damage. A condo corporation deductible endorsement on your unit policy is meant to cover that charge-back.