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What Does Condo Insurance Cover: Top 3 FAQs Answered!

Owning a condo offers benefits like shared maintenance and comes in all shapes and sizes: apartment-style, townhouses, and even some duplexes. However, your insurance needs differ from those of a renter or homeowner. Here’s a breakdown of key condo insurance considerations and why regular review is crucial.

1. What does condo insurance cover?

Imagine a fire damages your condo. Relief washes over you, knowing the building itself is covered. But wait—your furniture, electronics, and those beautiful new countertops? They are not covered by the condo association’s insurance. That’s where condo insurance steps in. It fills the gaps left by the association’s policy, protecting your personal belongings inside your unit. This includes furniture, electronics, and even upgrades you’ve made, like new flooring or countertops.

But condo insurance goes beyond your stuff. It also provides financial protection if someone gets hurt in your unit and decides to sue you for the injuries they sustained on your property. This is called liability coverage. Imagine a guest slipping on a spill – liability coverage can help you with any legal fees that might arise.

Some additional coverages to consider adding are Home Systems Protection, Sewer backup, Overland Water, and a Reduced Glass Breakage deductible.

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2. How much condo insurance do I need?

Belongings Coverage:

  • The Issue: Condo association insurance covers the building itself, not your personal belongings. Your condo insurance protects your furniture, electronics, and other valuables.
  • Why Review? Replacement costs rise due to inflation. Your initial coverage might not be enough to replace everything today.
  • The Solution: Most policies offer inflation protection, which automatically increases your coverage limit each year. However, you can also adjust the limit manually if needed.

Personal Liability Coverage:

  • The Protection: This covers you if someone gets injured in your condo, like a guest slipping on a spill. Liability also helps pay the associated legal fees.
  • Why It’s Important: Lawsuits can be expensive, and liability coverage protects you from paying out of pocket. It’s often the most undervalued coverage, but it’s also very affordable.


3. Do I need contingent coverage and loss assessment?

  • Contingent Coverage: This protects your financial interest in the condo if the condo association’s insurance is inadequate or unavailable for a covered loss. For example, if there’s a fire and the condo association has no insurance or not enough, your contingent coverage could help rebuild your unit (depending on policy limits).
  • Loss Assessment: This covers your share of unexpected repair costs to common areas, like the lobby or roof, if the condo association faces a large deductible or uninsured loss. Standard condo insurance typically includes loss assessment coverage, but review your policy to understand the specific limits.

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Some Additional Condo FAQs:

How much does condo insurance cost?

Condo insurance is typically cheaper than homeowners insurance. This makes sense because it covers less. Condo insurance focuses on your personal belongings (furniture, electronics) and liability, while the condo association’s insurance handles the building itself (walls, roof). Saskatchewan’s average condo insurance cost is around $350 – $550 before PST.

Is condo insurance mandatory?

There’s no legal requirement for condo insurance, similar to homeowners insurance. However, some condo associations and mortgage lenders may require it as part of your agreement.

How often should I review my condo insurance?

It’s recommended that you review your condo insurance policy annually. This allows you to adjust coverage limits and deductibles and ensure everything reflects your current needs.

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