If you own a condo in Toronto, you want to ensure that it is properly protected by the right condo insurance. Toronto homeowners typically understand the importance of insurance, but you may not be aware of how condo insurance can differ from a standard home insurance policy. After all, they both protect your home, right? However, there are some crucial differences between the two, and that’s where the Toronto insurance brokers at Morison Insurance can help.
Toronto condo insurance is a type of personal insurance that protects not only the interior of your unit but also provides insurance coverage for your personal belongings, much like a standard homeowners policy. But it also takes certain factors into consideration that are unique to condominiums, such as the possibility that improvements have been made to the unit during the time since it was first built and the fact that condominium corporations often require condo owners to pay a share of the deductible on the corporation's master policy.
With the right condo insurance, Toronto condo owners can rest easy knowing they have financial protection against unexpected expenses and insured perils. A home is often the most significant financial investment any of us will ever make. Ensure it has superior protection and contact your trusted Morison Insurance broker today.
Condo insurance in Toronto, along with other types of home insurance, is not mandatory in the sense that it's not legally required by the government. However, you will likely not be able to purchase a condo if you don't have adequate condo insurance. Toronto mortgage providers and banks typically require proof of insurance before finalizing a mortgage and will refuse to go through with the mortgage if you do not provide a certificate of insurance that lists the types of coverage and coverage limits that are acceptable to them. With the average price of a condo unit in Toronto being about $735,000, this makes having Toronto condo insurance coverage in place a necessity in order to purchase one, as you likely don’t have that kind of money just lying around.
Additionally, condominium corporations usually require new condo owners to have adequate condo insurance in Toronto. Even if you don't have personal insurance coverage for your condo, you will likely be required to participate in the condo corporation's master policy for the property. While condo insurance in Toronto isn't technically mandated by law, it is almost always mandatory in the sense that you won't be able to buy a condominium without it.
But even if you don’t need to worry about these requirements, it is still a very good idea to have proper condo coverage. As a condo owner, you are responsible for the inside of your individual unit, whereas the condo corporation owns the exterior elements of the condo building. This typically includes any interior walls, fixtures, and personal belongings. You may also be responsible for common areas such as parking lots, lobbies, or media rooms. In the event of an accident, ensure that your unit is properly protected. Without a condominium insurance policy in place, you may have to pay out-of-pocket for these losses.
You may be tempted to get the minimum amount of condo insurance in Toronto, but you should consider just how much insurance coverage is needed to protect all your personal belongings. It's necessary to have enough insurance to properly protect all the contents in your unit and any upgrades you have made to your unit so that in the event of a loss, you will receive the right coverage for your needs.
The amount of condo insurance in Toronto that you need to protect your assets inside your condo will vary based on each individual. For instance, person A may have a one-bedroom unit and may need extra protection for their electronics, while person B lives in a 2-bedroom unit and has an extensive jewelry collection they need extra coverage for. Because their insurance needs differ, they will need different amounts of condo insurance in Toronto.
You can purchase additional insurance protection if the standard limits are not enough and your condo requires a higher level of protection. It is important that you choose an amount of coverage that adequately insures all of your belongings and investments. A broker will provide expert advice and guidance and explain coverage options available in Toronto condo insurance policies to ensure your personal property is protected should the unexpected occur. When discussing how much coverage you need in your condo insurance, Toronto brokers will ask you about your personal belongings, contents, and upgrades to your unit.
How much do all your personal belongings cost for each household member? A member in the household may be a dependent, such as a young child, someone who is away for school, or a family member living in a nursing home. Belongings include, but are not limited to, clothing, furniture, electronics, high-value items, or collectibles. You will want to ensure your policy provides enough coverage so that in the event of a loss, your household’s personal items can be replaced when you make a claim. A useful guide is to review your home inventory checklist annually and record all the items you own. This helps you to keep track of your property. Any changes should be shared with your broker to be sure your condo insurance Toronto policy provides the coverage you need.
If you have made upgrades to your unit, such as installing a new marble countertop, new hardwood floors, or even remodeling a bathroom, be sure to tell your broker about these upgrades. Your Toronto condo insurance policy will protect the financial investment that you have made to the unit in the event of a loss.
Condo insurance in Toronto covers your contents, liability, additional living expenses, any betterments or improvements you have made to your unit, and loss assessment for a range of risks. Much like with home insurance, you can customize your policy to ensure you have the protection you need while not paying for something you don’t need in your condo insurance. Toronto brokers at Morison Insurance will take the time to discuss with you to make sure they have a clear idea of what you need in your policy. But, there are several things that are a good idea to include regardless of the type of policy you have or the building you live in. These include:
All personal belongings in your condo unit, such as your clothes, electronics, and furnishings, will be protected against an insured claim up to a specified limit outlined in your Toronto condo insurance policy. Additionally, if you have a basement storage unit or storage locker on the premises that contains your belongings like holiday decorations, bicycles, or extra furniture, these items will also be covered by your condo policy. That is why it is important to go through your condo room-by-room to determine the cost of all your personal items so that in the event of a claim, you would avoid having to pay out-of-pocket to replace your belongings due to inadequate contents coverage. Our professional brokers will be more than happy to help you determine just how much contents insurance coverage you need when discussing your Toronto condo insurance needs with you.
Accidents happen, sometimes through no fault of your own, but you could still be held liable for it. That’s where having personal liability coverage in your Toronto condo insurance can help.
Let's say you are having some friends or family members over, and someone slips and falls on your kitchen floor or is bitten by your pet, and there is bodily injury. With the proper liability coverage, medical bills and any subsequent litigation will be covered by your condo policy. As a condo unit owner, it makes sense to ensure you have the right insurance protection should anything happen to you, your family, or visitors in your home.
Having this type of Toronto condo insurance coverage is handy should the worst-case scenario occur. If there is major damage and your condo is not suitable for living due to an incident such as a fire or another unexpected event, you are required to find temporary accommodation while renovations or repairs are being completed. Because you can't live in your condo during this time, these additional living expenses for temporary accommodations can add up fast, making it hard to stay financially afloat the longer you are out of your home, but with this policy inclusion, your condo policy will cover the costs for you to live elsewhere until you can return to your fixed living space.
When your condo building was first built, there was likely a certain way the units were made up and designed, and over the years, changes are likely to have been made to personalize these units. If you have made any betterments or improvements to your condo unit, such as updating hardwood floors or installing new countertops and kitchen cabinets, these improvements will also be covered by your condo insurance Toronto policy with this type of coverage. If you have done any renovations to your condo, be sure to let your broker know so they can ensure your unit is protected.
That being said, it's also important to understand that betterments and improvements coverage applies to all unit improvements—even the ones that were made before you purchased the condo unit. If your unit had one or more previous owners, it's likely they renovated or upgraded the condo at some point. For example, they may have added hardwood flooring or switched out a basic laminate countertop in favour of marble. When you purchase a condominium, make sure to find out all the upgrades that have been done before you took over ownership, and let your broker know so they can include them in your coverage limits. If your condo is destroyed and must be rebuilt, you may not have sufficient coverage to restore it to the way it was with all the upgrades unless they are included in your policy for condo insurance in Toronto.
Whether you live in a high-rise condo, a low-rise, or some other type of building arrangement, there are common areas of your condo complex that are designed for all tenants to use, such as the lobby, elevator, hallways, gym, landscaping, parking lot, and more. If those parts of the complex suffer damage or are destroyed and need to be replaced, it's not uncommon for condo corporations to issue a special assessment to condominium owners requiring them to pay a portion of the deductible or part of the overall cost of building restoration if the coverage limits on the condominium corporation's insurance policy are not adequate to cover the entire cost of repairs or replacement. If you have loss assessment coverage as part of your Toronto condo insurance package, your insurance carrier will provide funds to cover your portion of the deductible or loss assessment up to the limits on your policy.
A typical policy for condo insurance in Toronto does not cover damage caused by wear and tear, rust, corrosion, gradual deterioration, insects and rodents (termites, squirrels, mice, etc.), repeated leakage or seepage of water, the freezing of indoor plumbing, or intentional or criminal acts. Specific exclusions will be outlined in your condo policy so be sure to review to ensure you have the right protection.
You may be able to purchase additional coverage to protect against loss or damage caused by some of the above-excluded coverages. For example, you may want to consider purchasing sewer backup or overland water coverage to protect against water damage losses. Note that adding coverage to your condo policy could increase your overall insurance premium, so make sure to speak to your insurance broker about how any additions may impact your policy rates. Remember though, that while some inclusions may raise your premiums, they would be worth it should the insured event occur.
This is a fairly common misconception. A portion of your condo fees go toward paying the condo corporation's insurance policy, which gives insurance coverage for the common areas of the building and property—basically everything that is not part of an individual condo unit. That means your unit itself and all your belongings inside are not protected by the insurance policy that is collectively paid by the condo fees. If the building was destroyed, or just your condo or belongings suffered damage, the condo corporation's coverage would not apply. You would need to have your own Toronto condo insurance in order to receive insurance compensation for your unit and its contents.
Condominiums are often located in high-rise buildings, which are especially popular in the Toronto area for their space-saving designs and excellent views, but condos can also be in low-rise buildings, townhouses, or even detached homes that are grouped together in a condo complex. If your property is governed by a condo corporation, you need the right condo insurance. Toronto homeowners who live in a townhouse or detached condo still need certain coverages such as betterments and improvements or loss assessments that are specific to condo insurance in Toronto and other parts of Ontario. Speak to our brokers to see if you need a standard homeowner's insurance policy or would benefit from something more specific such as condo insurance in Toronto.
If you are planning to rent your condo rather than living in it yourself, Toronto condo insurance is not going to be adequate to protect you against financial losses. You'll need additional coverage in the form of landlord's insurance. It's also worth noting that some condo corporations will not allow renting on a long or short-term basis, so it's important to make sure you fully understand the regulations put in place by your condo board before you go ahead with renting to a third party.
When it comes to the cost of condo insurance, Toronto homeowners need to know that it can vary quite a bit based on numerous factors such as:
When you speak to a broker at Morison Insurance, we'll start by consulting with you to get all the information we need to ensure that you have the right condo insurance in Toronto. For a package that includes recommended coverages and limits, you can generally expect to pay somewhere in the range of $500 to $1,800 for Toronto condo insurance.
It is best to shop for condo insurance in Toronto when you purchase a condo. In many cases, your mortgage lender will require proof of insurance before your condo purchase closes. The best practice is to have your condo policy active about 10 to 30 days prior to your closing date.
Setting up condo insurance in Toronto is quite simple. Brokers work with many insurance providers and will compare quotes from multiple insurers to get you the best protection at a competitive price. They will walk you through the entire process, giving you peace of mind knowing you are covered.
While of course, you can do all the legwork yourself in speaking to different insurance agents and comparing hundreds of policies, by working with a brokerage such as Morison Insurance, you can have peace of mind knowing that experienced insurance professionals will do their utmost to ensure you get the right coverage you need for condo insurance in Toronto at an affordable rate.
You can buy Toronto condo insurance from the team at Morison Insurance. We work with leading Canadian insurance companies to get you the best coverage for your Toronto condo, and can also provide you with comprehensive coverage and affordable insurance quotes for your personal or auto insurance needs.
Get started today by filling out the form on our website to get a quote online, or by contacting us at 1-800-463-8074 to discuss your needs for condo insurance in Toronto. Let us show you the Morison Insurance difference.
