Frequently asked questions about condo insurance in Canada

If this is your first time getting condo insurance, let’s answer some of the most frequently asked questions you may have.

Is condo insurance mandatory? Is it a legal requirement?

Condo insurance is not officially mandatory, nor is it a legal requirement when owning a condo. However, your condo building or your mortgage provider may have it as a requirement. Some people mistakenly believe that the building’s insurance will cover your condo unit. This is not the case. You will need your own separate condo insurance to be covered in case of emergencies.

Is condo insurance expensive?

Condo insurance is relatively cheap. The average cost of condo insurance is around $40/month. This can increase based on higher levels of risk and insurable assets.

What is not covered in a standard condo insurance plan?

Damages caused intentionally from you, or natural wear and tear from age and usage will not be covered in most plans. Also, damages caused by pests and rodents will generally not be covered.

Will condo insurance providers do a credit check?

Credit checks are not a mandatory step in issuing you with condo insurance. However, many insurance providers will run a credit check as there is a higher chance that you’ll make a claim if you have a poorer credit history. On the other hand, if you have a strong credit score, you may receive a larger discount.