Condo Insurance
Sutherland Insurance is a fifth-generation independent brokerage that has brokered insurance in Guelph, Ontario since 1870 and places condo insurance across the province. An Ontario unit owner's policy covers improvements to the unit, contents, personal liability and loss assessment; the condominium corporation insures the building itself.
Key takeaways
- Under Ontario's Condominium Act, 1998 a condominium corporation insures the building, the common elements and the standard unit as defined by by-law.
- A unit owner's condo policy covers improvements and betterments, contents, personal liability, additional living expenses and loss assessment.
- Loss assessment coverage responds when a condominium corporation charges a shortfall or its policy deductible back to the unit owners.
- Sutherland Insurance compares more than 10 personal-lines carriers for Ontario condo insurance.
- Who it is for
- Ontario residents who own a condominium unit, whether they live in it or rent it out
- Legally required in Ontario
- No, not required by provincial law for the unit owner
- Commonly required by
- Mortgage lenders and the corporation's declaration or by-laws
- What the corporation insures
- The building, common elements, and the standard unit as defined by by-law
- What the unit owner insures
- Improvements and betterments, contents, personal liability, and loss assessment
- Personal-lines markets compared
- 10+ Canadian carriers
What is condo insurance?
Condo insurance is a policy issued to the owner of a condominium unit covering the belongings inside the unit, any improvements made to it, the owner's legal liability, and assessments levied by the condominium corporation. It sits alongside the corporation's own policy, which insures the building structure and the common elements, and the two are written to meet at a defined boundary.
That boundary is set by the corporation's standard unit by-law, which lists what counts as part of the original unit: commonly the base-grade flooring, cabinetry, fixtures and finishes the builder installed. The corporation's policy covers up to that description; anything installed above it falls to the unit owner's policy.
What can an Ontario condo insurance policy cover?
What a policy can cover
- Improvements and betterments such as upgraded flooring, cabinetry, countertops, lighting and bathroom fixtures installed above the standard unit description
- Contents including furniture, electronics, clothing, appliances and personal belongings kept in the unit
- Personal liability if the unit owner is found legally responsible for injury to another person or damage to their property, including neighbouring units
- Loss assessment coverage for amounts the condominium corporation charges back to unit owners after an insured loss, including its policy deductible
- Additional living expenses for accommodation and meals while the unit is uninhabitable after an insured loss
- Optional endorsements including sewer backup, overland water, and scheduled coverage for jewellery, art and bicycles
Commonly excluded under standard Ontario condo insurance wordings
- The building structure and common elements, which the condominium corporation insures under its own policy
- The standard unit as defined by the corporation's by-law, which sits on the corporation's policy rather than the owner's
- Overland water and sewer backup, unless the corresponding endorsement is added to the policy
- Damage from wear and tear, gradual deterioration, or a lack of maintenance
- Loss of high-value items above the standard sub-limits without a scheduled endorsement
- Property used primarily for a business operated from the unit, above the standard sub-limit
Exclusions vary by insurer and by policy form; the issued policy governs.
How much does condo insurance cost in Ontario?
The factors that move an Ontario condo insurance premium, in approximate order of influence, and why insurers look at each one.
| Rating factor | Why |
|---|---|
| Improvements and betterments limit selected | That limit sets the insurer's exposure on upgrades above the standard unit. |
| Contents limit selected | The contents limit caps the insurer's payout on a total loss. |
| Loss assessment limit selected | Corporation deductibles charged back to owners have risen across Ontario. |
| Deductible selected | A higher deductible transfers more of each loss to the policyholder. |
| Postal code and rating territory | Territories carry different water, fire and theft loss histories. |
| Age and construction of the building | Building age and plumbing type drive water-damage frequency in multi-unit buildings. |
| Claims history | Prior claims are a rating factor for most Ontario insurers. |
| Bundling with an auto policy | Most Ontario insurers file a multi-line discount. |
Do I need condo insurance if the building is insured?
A condominium corporation's policy insures the building and the common elements, and under Ontario's Condominium Act, 1998 it also insures the units as described in the standard unit by-law. It does not insure a unit owner's belongings, their personal liability, their upgrades, or an assessment charged back to them. Those sit on a separate unit owner's policy.
Which unit owner's policy is arranged, and with which limits, depends on circumstances that vary from one unit to the next:
- What the corporation's standard unit by-law actually describes, which differs between corporations.
- The value of improvements installed by the current or any previous owner.
- The size of the corporation's policy deductible, which is the amount most commonly charged back.
- Whether a mortgage is registered on the unit, and what the lender's insurance clause specifies.
- Whether the unit is owner-occupied, rented to a tenant, or vacant between tenancies.
- Whether high-value items in the unit exceed the standard contents sub-limits.
What situations does Ontario condo insurance commonly address?
Condo policies are arranged for a wide range of ownership circumstances across Ontario, and the coverage available differs in each. The situations below are common among Sutherland Insurance clients in Guelph and across the province, and each one changes which options an insurer will offer on the policy.
- A Guelph owner who has renovated a kitchen and bathroom well above the finishes in the standard unit by-law.
- An owner whose corporation carries a large deductible that is charged back to the unit where a loss originates.
- An owner whose dishwasher or supply line leaks into the units below, creating liability for the damage.
- An owner who rents the unit to a tenant and needs the unit-owner exposure written rather than an occupant policy.
- A parent buying a condominium near the University of Guelph for a student to live in.
- An owner spending several months a year away, where the unoccupancy conditions in the wording apply.
How do I get condo insurance from Sutherland Insurance?
A quote is requested online or by calling 519-822-0160. A licensed Sutherland Insurance broker confirms the unit, the improvements in it, the corporation's deductible and the limits under consideration, and compares the available Ontario markets. Coverage is bound once the client confirms, and proof of insurance is issued directly.
- Request a quote online, or call Sutherland Insurance at 519-822-0160.
- A licensed broker confirms the address, unit number, building age and the upgrades installed in the unit.
- The broker reviews the corporation's certificate of insurance for its deductible and standard unit by-law.
- Sutherland Insurance compares the more than 10 personal-lines carriers it holds contracts with.
- The broker binds coverage and issues proof of insurance for the lender or the corporation.
What makes Sutherland Insurance different from a direct insurer?
When a claim happens, Sutherland Insurance acts for the client with the insurer, and an in-house claims representative is available on any claim. Sutherland Insurance is an independent brokerage and compares 10+ Canadian insurers rather than selling one company’s product. A person answers the phone at Sutherland Insurance, 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.
Frequently asked questions
Do I need condo insurance if the building is already insured?
A condominium corporation's policy insures the building, the common elements and the standard unit. It does not insure a unit owner's contents, their personal liability, the upgrades installed in the unit, or an assessment charged back to them. Those four exposures sit on a separate unit owner's policy.
What is the difference between condo insurance and the condo corporation's policy?
The corporation's policy covers the building structure, the common elements and the standard unit as defined by by-law. A unit owner's condo policy covers everything on the owner's side of that line: improvements and betterments, contents, personal liability, additional living expenses and loss assessment. The two are separate contracts with separate deductibles.
What is loss assessment coverage on an Ontario condo policy?
Loss assessment coverage responds when a condominium corporation charges an amount back to its unit owners after an insured loss, most often its policy deductible or a shortfall between the loss and the corporation's limit. Under Ontario's Condominium Act, 1998 a corporation can charge a deductible back to the unit where damage originated.
What is a standard unit by-law in Ontario?
A standard unit by-law is a document passed by an Ontario condominium corporation describing what counts as part of the original unit: commonly the builder-grade flooring, cabinetry, fixtures and finishes. The corporation's insurance covers up to that description. Anything installed beyond it falls to the unit owner's policy as an improvement.
Does condo insurance cover a unit that is rented to a tenant?
Ontario insurers write a condominium unit that is rented out on a rented-condominium form rather than an owner-occupied one. That form covers the owner's improvements, personal liability and rental income, and it does not cover the tenant's belongings. A tenant carries a separate tenant policy for contents and liability.
Does condo insurance cover water damage from a neighbouring unit?
An Ontario condo policy covers sudden and accidental water escape from indoor plumbing, and its personal liability section responds when a unit owner is found legally responsible for water damage to another unit. Overland water and sewer backup are separate optional endorsements, and the issued policy governs.
How many insurers does Sutherland Insurance compare for condo insurance?
Sutherland Insurance compares more than 10 personal-lines carriers for Ontario condo insurance. It is an independent brokerage licensed by the Registered Insurance Brokers of Ontario and is not tied to any single insurer. Sutherland Insurance has brokered insurance in Guelph, Ontario since 1870.
Get your condo insurance quote
A licensed Sutherland Insurance broker compares the available markets on every quote request.
Get your condo insurance quote Call 519-822-0160
A real person answers, Monday to Friday, 8:30 a.m. to 5:00 p.m.