First thing I would like to say about home insurance- this is not what we specialize in. We are experts when it comes to brokering mortgages, not determining what type of home insurance would be best suited for you. That being said, there are 3 key topics we would like people to be aware of when it comes to home insurance on condos.

Building Coverage Versus Unit Coverage

First, the strata or condo insurance that your condo building has in place protects the building as a whole, not your individual unit. Any damage caused by your unit or a neighboring unit is most likely going to need to come through your own personal home insurance coverage and is not covered by the strata’s. Water leaks being a big one, as well as home damage by a guest or visitor, robbery or theft.

Deductibles

Second, your strata buildings insurance usually has a deductible. This deductible can sometimes be 10’s of thousands of dollars and you will need to pay that in order to have your portion of the strata insurance kick in. This usually happens when their is a catastrophic fire, earthquake, or massive damage to the strata building itself. Deductibles can be a big blow to any savings you may or may not have and a lot of personal home insurance polices will cover that entire deductible.

Injury and Renters

If you have tenants, frequent guest, or long term visitors, you need personal home insurance. If someone injures themselves inside of your condo unit and you are found to be negligent, they have the ability to sue you and the buildings strata insurance will not cover personal injury claims.

When we review documents with a client, we also recommend that our clients reach out to someone who can offer home insurance. It is a free conversation that helps clients fully understand any potential risks that may come from them owning their new home.