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Condo Insurance Coverage Explained for Ontario Condo Owners

Condo Insurance Explained | KBD Insurance
Curtis Killen

As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.

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Here we’re explaining condo insurance coverage in Ontario in-depth, so you can be sure to get the right fit.

So you decided to bite the bullet and buy a condo in Ontario.

Congrats – you’ll never have to do yardwork again.

Condo Insurance in Ontario Explained

But condos come with their own set of issues.

And figuring out how condo insurance works can be one of them.

No stress – if you’re looking for condo insurance, you’ve come to the right place.

This blog explains condo insurance coverage in Ontario in-depth.

From what you should have covered, to average Ontario condo insurance costs, to condo association insurance.

Read on for all of our best tips.

Already know what you need?

Just give us a call.

Or jump ahead to learn the deets:

Is condo insurance mandatory in Ontario?

Condo insurance isn’t mandatory by law in Ontario.

However, just like home insurance, if you have a mortgage, your lender will require you to carry condo insurance.

On top of that, most condo associations will also require you to carry condo insurance.

Plus, it’s just a good idea – otherwise your real estate investment could be in the hands of your 400 neighbours.

That might be an exaggeration depending on your building, but you get the idea.

Either way, we recommended condo insurance coverage.

Ready for a condo insurance quote?

Hit up the team at KBD.

What insurance do I need for a condo?

So, how does condo insurance work?

First things first, when buying condo insurance, it’s important to understand how the coverage works on your specific policy.

Your condo insurance broker can help you with that.

But in the meantime, let’s go over the basics.

There are two types of condo insurance in Ontario that you need:

  • #1. Condo association insurance

This is the insurance that the condo board purchases, and it covers the entire structure itself.

For example, I live in a condo building, and our policy has a limit of $158 million – the value it would cost to rebuild the entire condo structure.

You pay into it as part of your monthly condo fees.

It typically covers things like the building, the units inside, and any repairs required.

Pro tip: When you move into your condo, make sure to read through the fine print of your contract.

Depending on the condo association’s agreement, you might be responsible for paying an insurance deductible if there is an accident involving your unit.

  • #2. Personal condo insurance

Personal condo insurance on the other hand covers everything inside your condo.

It can cover your betterments (renovations), property theft, vehicle break-ins, personal liability, and identity theft related losses.

This is the condo insurance that you’re responsible for buying.

Below, we’re going over exactly what personal condo insurance covers.

Or if you’re ready to buy condo insurance, hit us up.

Our Ontario condo insurance brokers will help you out.

What does condo insurance cover?

Here’s what you need to know about personal condo insurance.

In Ontario, personal condo insurance has five main coverages:

  1. Contents: These are your personal belongings, including jewelry, clothing, furniture, appliances, etc.
  2. Civil liability: This covers damages to a third party. So for example, if water leaks from your unit into your neighbours and they sue, this insurance would cover you.
  3. Additional living expenses: If you’re required to move out due to a claim, this will cover your temporary living arrangements, and things like your groceries and transportation.
  4. Improvements and betterments: Say you install a high end kitchen. The unit’s overall value will go up. So, improvements and betterments covers the value of any upgrades you make to your condo.
  5. Loss assessment: This covers damages to common areas that you’re responsible for in your condo building. Make sure to find out which areas these are when you move in.

In plain language, here are a few coverages to ask about when talking with your condo insurance broker:

  • Coverage for your belongings
  • Coverage for any improvements you make to your condo unit
  • Insurance for common areas in your building
  • Additional living expenses
  • Damages to common areas of the condo building

Condo insurance is always determined on a case by case basis, so the best way to get the right coverage for you is to ask your Ontario insurance broker.

Need a condo insurance estimate in Ontario?

Give the team at KBD a call.

What’s the difference between commercial condo insurance and personal condo insurance?

Like we mentioned above, when you move into your condo, you’ll have to start paying condo fees.

A percentage of your monthly condo fees go towards paying the condo building’s collective insurance.

This is the insurance that covers the entire building itself, and related upkeep like renovations, and repairs.

BUT, don’t assume that just because your condo corporation or association has insurance, that it means that you don’t need to buy personal condo insurance.

You do. Or at least, you should.

And they might not let you move in if you don’t.

Remember, your personal condo insurance covers your unit and your belongings inside it.

Most condo associations will require you to carry a minimum of $2 million in liability insurance.

Ready for a condo insurance quote?

Give the Ontario insurance brokers at KBD a call.

Tips for buying condo insurance

Ready to buy your Ontario condo insurance?

Here are a few tips that we recommend to first time condo insurance buyers:

  • Shop around and compare rates
  • Make sure you get personalized coverage
  • Fully understand what you’re covered for
  • Choose the right deductible amount (we recommend $1000)
  • If you rent out your condo, you’ll need additional coverage (and make sure to advise your insurance company if you do!)

Check out this video where we share our best advice for buying a condo and getting condo insurance in Canada.

3 Tips for Condo Insurance Canada

Ready to get your condo covered?

Give us a call.

How much does condo insurance cost in Ontario?

Condo insurance costs an average of $550 a year in Ontario in 2023.

That works out to an average of $45 a month.

Factors that affect your personal condo insurance cost include:

  • The square footage of your condo
  • The contents you choose to insure

And you might be wondering why condo insurance is so much cheaper than homeowner’s insurance.

This is because it only covers personal property and liability.

Home insurance includes insurance for the building as well.

But if you own a condo, the condo association’s insurance covers the building and maintenance of common areas – so you just pay into that with your condo fees.

Need a quote on Ontario condo insurance?

Give us a call.


There you have it.

Condo insurance coverage explained in a nutshell.

You can now go out and buy your first condo, or three.

But if your eyes glazed over while reading this entire blog, no worries.

Hit us up for a quote.

We’ll do the studying for ya’.

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