Home insurance for condominium owners: six tips for taking out insurance

Consider the liability requirements

Since October 2020, condo owners are required, at the very least, to have third-party liability coverage. Third-party liability will cover you if you’re ever held responsible for damage to the building.

By law, condo owners are required to have a minimum civil liability coverage of $1 million for buildings of 12 units or fewer, and $2 million for buildings of 13 units or more.

Tip #1: Comparing the prices for civil liability insurance of $2 million rather than of $1 million could be a wise choice.

Include the value of unit improvements

If you renovated after purchasing your unit or chose higher-quality building materials when the unit was under construction, it’s very likely that these improvements have increased the value of your unit. You’ll have to do a little accounting to estimate the right amount of coverage you need to take out from your insurer.

Tip #2: When in doubt, compare the details of your unit with the official description of a standard unit in the building.

Take stock of your personal belongings

To accurately determine the amount of insurance you need to cover your personal belongings, take an inventory of each room—with the pictures to prove it!

Tip #3: Make sure you tell your insurer about any high-value items you own. Be aware, some things are subject to limitations (like your hockey card collection, for example).

Understanding the “loss assessment” extension of coverage

As a condo owner, you’re surely already familiar with the notion of a contingency fund. But what happens if your building is damaged and there’s not enough cash in the fund to cover the repairs? Unfortunately, the co-owners would, in this case, have to make a special contribution. Unless, that is, the loss assessment extension of coverage saves the day!

This extension of coverage protects a certain percentage of the amount owed by co-owners to the co-ownership syndicate in the event of an insufficient contingency fund or insurance payout. To benefit from this extension of coverage, however, the damage claimed must be covered under the policy.

Tip #4: Never hesitate to ask your insurance agent for more details.

Look into the co-ownership syndicate’s insurance policy

Condo insurance covers civil liability and the personal property in your unit (i.e., the private portion of the building). Condominiums have a particularity, though: a second policy must be taken out by the co-ownership syndicate to insure the building and common areas (the hallways and parking garage, for example).

Tip #5: Your co-ownership syndicate must make a copy of their insurance policy available to all co-owners. Be sure to review it and take note of its coverage, deductibles and exclusions.

Shop around to find the condo insurance that’s right for you

Many factors affect the price of condo insurance. The best way to save on insurance is to compare several quotes and bundle your auto and home insurance under the same policy.

Tip #6: If you already have an iA Financial Group product, you may be eligible to save up to 10% on an additional product!

Ready to find the insurance you’ve been looking for? Check out our quick reference guide on getting a home insurance quote.