What Is Condo Insurance and How Does It Work?
Understand how personal condo insurance fits with your building’s master policy and what risks it helps you manage
Condominium ownership comes with unique insurance needs. You’re not responsible for the entire building, but you are responsible for what’s inside your unit—and sometimes more. Condo insurance, also known as unit owner’s insurance, fills the gaps left by your condo corporation’s master policy and protects your investment in everyday life.
This matters when you’re closing on a unit, reviewing your condo fees, or experiencing damage to your space. You might think about this the next time you wonder who pays for repairs after a leak, break-in, or fire inside your unit.
What Condo Insurance Covers That Your Building Doesn’t
Your condo building will have a master policy that insures the structure, shared spaces, and external features. But that policy stops at your unit’s interior. Your personal condo insurance steps in to cover:
1. Personal Property
Furniture, electronics, clothing, and other belongings inside your unit are covered if damaged by fire, theft, vandalism, or other named risks.
2. Unit Improvements and Upgrades
If you’ve upgraded flooring, countertops, or fixtures, your policy can cover those improvements, even if the building would only restore standard materials.
3. Personal Liability
If someone is injured in your unit or you accidentally cause damage to another unit (like water from your dishwasher leaking below), your liability coverage protects you legally and financially.
4. Loss Assessment
If your condo board charges all unit owners for a shared insurance deductible or building damage not fully covered by the master policy, this coverage helps you pay your share.
5. Additional Living Expenses
If your condo becomes uninhabitable due to a covered loss, your policy pays for temporary housing, meals, and daily costs.
| Coverage Area | What It Protects |
|---|---|
| Personal Belongings | Items inside your unit from theft, fire, or other risks |
| Upgrades and Betterments | Renovations or improvements not covered by the condo board |
| Liability Protection | Legal expenses for injuries or damage you cause |
| Shared Cost Assessments | Special charges from the condo corporation |
| Loss of Use | Expenses if you must leave your unit during repairs |
Note: Each condo building has different insurance rules. Ask your property manager or board for a copy of the building’s master policy so you can align your personal coverage accordingly.
Why Condo Owners Still Need Insurance
It’s easy to assume that your condo fees cover everything. But in most cases, they only insure the building envelope and common areas. You’re still at risk for:
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Damage to your own furniture and upgrades
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Accidental water or fire damage caused to others
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Being charged for part of a shared loss, like a roof repair or lobby fire
Tip: Review the deductible on your condo corporation’s master policy. If it’s high—often $25,000 or more—make sure your policy includes sufficient loss assessment coverage.
How to Tailor Your Condo Insurance
Condo insurance should reflect your lifestyle, renovation history, and the financial structure of your building. If you’ve made significant upgrades or live in a high-rise with shared plumbing systems, you’ll want more robust coverage. If you’re primarily concerned with liability and a few personal items, a basic policy may suffice.
Caution: If you underinsure your unit and something goes wrong, you may end up paying out of pocket for repairs or charges your building doesn’t cover.
Condo insurance gives you the freedom to enjoy your home without worrying about the unexpected. By complementing your building’s policy with the right individual protection, you can safeguard both your belongings and your financial wellbeing.