How does condo insurance work in Toronto?
![a view of the condominiums on the Lake Ontario in Toronto]()
There are thousands of condominium owners in the Greater Toronto Area. It is estimated that about 1.5 million people representing 54.7% of the city population and 13% of Toronto families live in condos. The city has the most condos in the country – 23% of total units.
However, many Toronto condo owners still have some confusion about their insurance and what's covered. Over 60% of condo owners assume their condo corporation will cover water and fire damage. Three-quarters are unclear about what their personal condo policy should cover. Having the right level of condo insurance in Toronto is imperative.
The reality is strata condo corporation insurance plans only offer minimal coverage for individual units. So, even though it's not mandatory, insurance is needed to protect your condo and your things.
Condo insurance works the same in Toronto as anywhere else in the province. It is similar to home insurance in Toronto, but there are a couple of key differences.
As a condo owner, you own everything in the interior of your unit. Your condo building owns the exterior. Therefore, your personal insurance covers you for the things inside of your home, including all walls, fixtures, appliances, and personal belongings. You may also have coverage for other common areas in the building such as your parking space and storage locker. Your plan covers you if damage or theft occurs. The liability part of your plan protects you if a third party is injured while inside your condo.
When you open a claim, some of it may be covered by your policy, and some is covered by the building owner’s plan. It depends on the claim type and circumstances.
The Financial Services Regulatory Authority of Ontario (FSRAO) oversees insurance in the province. Section 6 of the Condominium Act regulates condo corporations concerning insurance.
Toronto condo insurance policy options
Most people opt for comprehensive protection. But there are other coverage options to choose from that may be right for you. Here are the three main types of condo policies:
- Comprehensive condo insurance (all-risk): This offers similar protection to comprehensive home insurance. You have the most protection from the greatest amount of threats. It's also the most expensive coverage option. You have coverage for all threats unless it's specifically excluded in your policy.
- Broad form condo insurance: This offers similar coverage to broad form home insurance. You have protection against the threats that are listed in your policy.
- Specified perils condo insurance: This is similar to named perils home insurance. Your policy included protection against common perils only. You are protected against the threats specifically listed in your policy.
