How Much Condo Insurance Do You Really Need?

InsurEye
by InsurEye June 24, 2016 / No Comments

Buying a condo is a great choice for those who don’t want the hassle of maintaining a house or for those downsizing and looking for a more affordable living option. Your condo fees support maintenance in the common area and the building’s exterior (roof, cladding, windows, etc.) and this is precisely why there are several special insurance policies involved.

These policies are:

  1. Commercial condo insurance—This policy, which covers the structure of the building and the common areas, is owned by the condo corporation.
  1. Personal condo insurance—This is the policy you own, which covers the condo contents, upgrades, premise and personal liability, and theft from your condo or locker.
  1. Tenant insurance—If you’re renting out your condo, additional policies, such as landlord/tenant insurance might be required.

However, we’ll focus on personal condo insurance and the coverage you need for your particular situation.

Condo insurance coverage limits: A comparison

While a personalized quote will give you the exact value of your policy, the suggested guidelines below offer an overview of the coverage you can expect for a variety of different situations.

Minimum coverage Average coverage Extensive coverage
General coverage
Upgrades, improvements, and fixtures $0

 

 

$10,000

(hardwood floors, crown moulding)

 

$100,000

(new kitchen cabinets and counters, hardwood floors, and crown moulding)

Condo corporation insurance-related assessments $2,500 $10,000 $25,000
Personal and specialty property $20,000

Clothing, appliances, and electronics (TV, phone, computer)

 

 

$50,000

Clothing, appliances, electronics (TV, phone, and computer), jewelry, musical instruments

 

$100,000

Clothing, appliances, electronics (TV, phone, and computer), jewelry, musical instruments, china and silverware, and art and/or wine collection

Loss of use, liability, and optional coverage
Additional living expenses ~$24,000

Furnished one-room condo/apartment ($2,000/month) for 12 months

~$36,000

Furnished two-room condo/apartment ($3,000/month) for 12 months

~$54,000

Furnished two-room condo/apartment
($3,000/month) for 18 months

Personal and premises liability $500,000 $1 million $2 million
Identity theft and financial loss $10,000 $20,000 $50,000

Condo insurance policies are affordable and easy to obtain. If you already have one, review it to ensure you’re fully covered. If you’ve been gambling with your financial future by living without insurance, get a policy to ensure peace of mind.

Condo insurance tips

There are a few other things to consider when purchasing condo insurance:

Locker: Did you know your condo insurance also covers your locker? A private locker is considered part of your insured dwelling. Make sure your insurer knows you have one so it can be included in your policy.

Valuable and special items: Make sure to get coverage for all non-standard, valuable items you have in your condo, from expensive jewelry and engagement rings to costly music instruments and sporting equipment. Artwork and wine collections need to be considered separately.

Home sharing programs: Don’t forget to tell your insurer if you participate in any home sharing programs such as Airbnb. Not doing so may result in the insurer refusing to pay your claim.

These insights are shared by InsurEye, a leading Canadian platform for consumer insurance reviews, offering home insurance quotes across Canada including home insurance in Edmonton, Calgary, Toronto, Vancouver and other locations.

Also read:

Flickr: marc falardeau