How Much Condo Insurance Do You Need?

Condo insurance isn’t one-size-fits-all. While most policies include similar types of protection—personal belongings, upgrades, liability, and living expenses—the amount of coverage you choose should match your unit, your lifestyle, and the gaps in your condo corporation’s master policy.

This becomes especially important when you've invested in renovations, own high-value items, or live in a building with high deductibles. You might think about this the next time you add new furniture or receive a notice about building insurance changes.

Start With the Value Inside Your Unit

The first step in estimating how much condo insurance you need is calculating the cost to replace your belongings. That includes:

Furniture and electronics: Sofas, beds, televisions, computers, and small appliances
Clothing and footwear: Everyday wear plus seasonal items like coats and boots
Kitchenware and décor: Dishes, cookware, rugs, artwork, books, and accessories

If you had to replace everything after a fire or flood, what would it cost?

Category	Example Items	Estimated Value
Living room and bedroom	Furniture, TVs, sound systems	$5,000–$10,000
Clothing and personal items	Wardrobe, shoes, outerwear	$2,000–$5,000
Kitchen and storage	Small appliances, cookware, utensils	$1,000–$3,000
Upgrades and finishes	Flooring, countertops, fixtures	Varies widely by unit

Note: Most base policies include $20,000 to $30,000 in contents coverage. If your lifestyle includes high-end items or upgrades, you may need significantly more.

Consider Renovations and Upgrades

Condo insurance should also account for improvements made to your unit that go beyond what the builder originally installed. This includes:

Hardwood flooring
Custom cabinetry
Stone countertops
Designer lighting or plumbing fixtures

If these are damaged, the condo corporation's policy usually only replaces the original standard finishes—leaving you responsible for the added value. Estimate the cost of restoring those upgrades when selecting your policy limit.

Tip: Keep receipts or photos of renovations. They help prove value during a claim and ensure your insurer includes them in your protection.

Don’t Overlook Liability Coverage

Liability insurance is one of the most important but least understood parts of a condo policy. It protects you financially if you're found legally responsible for bodily injury or property damage. This might include situations like a guest slipping on your floor and getting injured, your child breaking a neighbour’s window, or a leaking appliance in your unit damaging several floors below.

Without adequate liability coverage, you could be responsible for medical expenses, repair costs, and even legal fees—out-of-pocket. These situations can escalate quickly, especially in high-rise buildings where one small issue can affect multiple neighbours.

Most condo policies come with $1 million in liability coverage as a default. However, increasing this to $2 million is often inexpensive and significantly improves your financial safety net. It’s a smart option for anyone who regularly hosts guests, owns pets, or lives in a multi-unit building where damage can spread.

Tip: Ask your insurer whether your policy covers legal defense costs in addition to damages. This can make a big difference if a claim goes to court.

Plan for Temporary Housing

Your policy should also include coverage for additional living expenses in case your unit becomes uninhabitable after a covered event. Consider:

How long it would take to find a temporary rental
Whether hotels and meals in your area are costly
If your lifestyle includes children, pets, or others who need special accommodations

Caution: A basic $10,000 limit may not go far in a high-cost city or during a lengthy building repair.

Coverage That Matches Your Reality

The right amount of condo insurance is not the cheapest policy—it’s the one that actually covers what you’ve invested in your home and protects you from real risks. Whether you’ve upgraded your space, own valuable items, or simply want to feel secure in your unit, aligning your policy with your needs is the smartest financial move you can make.