Buying and living in your own condo is a dream of many. It is also a great initiative to downsize from huge houses to compact, cozy, and modern condominiums. While all these seem very dreamy, you will also have to think about the costs associated with condos in Canada.
When you buy a condo, you pay additional amounts as condo fees. This fee covers common area renovations and fixes. But what happens if you need coverage for anything inside your condo? You can get personal insurance for this. So, it might be time to start looking for condo special assessment insurance.
But before you start signing insurance agreements, here is a guide to condo insurance in Canada to help you out.
What Is Condo Insurance?
Condo insurance is a separate personal policy that protects your condominium and supplements the coverage provided by your condominium corporation. Gyms, lobbies, pools, elevators, and corridors are usually covered by the condo corporation’s insurance.
On the other hand, your personal condo insurance will cover everything in your apartment. This includes personal belongings, repair costs, living expenses while repairs are being made, liability in the event that someone is injured in your unit, and many more.
What Does Condo Insurance Cover?
So, your condo insurance will cover several expenses for you. Here’s a complete list:
Home upgrades
It is imperative to protect your property by upgrading the unit. So, be very explicit about what your condo offers while communicating with your insurer. Some condominium associations have adopted strict laws where you would need to pay for flooring and other renovations. You can use the condo insurance for this purpose.
Personal belongings
Any personal items inside the condo are covered under your condo coverage. Furniture, jewelry, gadgets, clothing, and other valuables are all protected.
Theft
This coverage is connected to the previous point. Due to quality security features, condos pose a low danger of theft. So, any theft of your personal belongings is covered by condo insurance.
Medical costs
If someone is hurt on your property, condo insurance pays their medical fees. It also helps you pay legal fees if the harmed individual decides to sue you. The average coverage runs from $500,000 to $3 million, so you’ll have lots of options.
3 Factors that Affect Your Condo Insurance Price
Getting condo insurance will cost you a good amount of money. But this price is related to a few factors that you can be aware of beforehand.
Here are the 3 most important ones:
Location
Your insurance costs are heavily influenced by where you live. Also, premiums in high-crime areas are higher because of the greater risk of theft, burglary, and break-ins. Premiums for those who live in flood-prone areas will also go up.
Property type
Different dangers affect people who live in a condo townhouse or a penthouse. A condo townhouse, for example, will normally have greater insurance prices than a huge building unit. The townhouse must also be protected from the exterior walls. However, the outer walls of a large condo complex are already covered by common area insurance.
Credit score
Condo insurance can be reduced by up to 25% with a better credit score. On the other hand, a bad credit score will not raise your condo insurance prices. You can always check your credit score for free to see how excellent it is. When you apply for insurance in Canada, it is usually a good idea to disclose your credit score.
Apply for a Condo Insurance Today
You must first choose an insurance company. Then you must submit basic personal information such as your name, age, and gender.
Along with this, you will need to provide the following information about your condo:
- The construction year
- The roof’s age
- The heating system type
- The construction materials
- Fire alarm system, if any
- The full value of your personal belongings
Remember to compare quotations on a like-for-like basis while looking for condo insurance in Canada. Check to see if you’re overpaying for insurance. The best practice would be to consult your bank or current insurance agent for referrals.
Conclusion
So, condo insurance in Canada can help you out with many things while you live peacefully and stress-free in your new condominium. It is an additional coverage plan that you can take for yourself. But remember that it is not mandatory to get condo insurance. You might only need it for mortgage lenders and your own assurance.
