How much coverage is there for condo insurance? In Quebec, with the passage of Bill 141, condo insurance now has a stricter management framework. This is reflected mainly in the assessment of the value of the building every five years, the insurance fund, and the condo maintenance logbook.

Condo syndicates have the obligation since April 15, 2021, to take out adequate condo insurance that covers their liability and that of the elected members of its constitutional bodies toward third parties—ambitious goals that have a significant impact on the co-owners’ wallets.

Here is everything you need to know about condo insurance.

What is condo insurance?

Condo insurance, also known as condominium insurance or HO-6 insurance, is a type of insurance policy designed specifically for condominium unit owners. The condominium association typically carries a master insurance policy with condo insurance coverage of the building and the structure itself. Condo insurance, on the other hand, offers the following coverage:

Personal Property Coverage: Condo insurance safeguards the policyholder’s personal belongings, such as furniture, clothing, electronics, and other valuables, against covered perils. This coverage extends beyond the physical unit and offers financial protection for belongings anywhere in the world.

Dwelling Coverage: The condo policy typically covers the interior structures of the condo unit, including walls, floors, ceilings, built-in appliances, and fixtures.

Liability Coverage: If the unit owner is found responsible for injuries to others or damage to their property, liability coverage helps cover legal fees, medical expenses, and potential settlements.

Loss of Use Coverage: If the condo becomes uninhabitable due to a covered peril, loss of use coverage can help pay for temporary living expenses, such as hotel bills or rental costs, until the unit is repaired.

Additional Living Expenses (ALE): Similar to loss of use coverage, ALE reimburses the insured for additional costs incurred while the unit is being repaired, such as increased commuting expenses or extra dining expenses.

Condo Syndicate Insurance

Different from the insurance taken out directly by the co-owners, the condo insurance taken out by the condo syndicate of co-owners must cover:

  • The civil liability of the syndicate;
  • Theft and fire with the new construction value of the building (mandatory with the entry into force of Bill 141 for condos, and it must be renewed every 5 years);
  • The common areas of the building;
  • Common property;
  • The original fittings of the condos.

Condo Insurance: New Fees for Co-owners

With the new legal obligations, insurance expenses are increasing condo association fees more and more.

Condo Insurance for the Co-owner

Condominium insurance protects the property of the co-owners (movable assets, personal property, household appliances, electronic devices, clothing, etc.), as well as recent improvements made to the condo since its construction. The breakdown between the original fittings and the improvements must be specified in the insurance declaration in the event of a claim.

Condo Insurance for the Condo Syndicate of Co-owners

For the syndicate, condo insurance covers:

  • Common areas (lobby, rooftop terraces, windows, etc.);
  • The liability of the syndicate;
  • The liability of the elected members of the constitutional bodies.

Condo Owner Insurance

Each co-owner or tenant insures their property through home insurance for condo buildings. This condo insurance policy covers unintentional personal and property damage in the unit, but also against third parties and civil liability (water damage, moldy walls, etc.), or even more depending on the scope of the insurance coverage.

How much does condo insurance cost?

According to KBD Insurance data, in 2023, condo insurance cost around $610/year on average in Quebec, Canada. The cost varies in each province depending on various factors.

Who pays what?

By law, the syndicate insures the common areas and the initial private portion, and the co-owner insures their condo unit improvements and personal belongings.

What could cause the price of condo insurance to vary?

Various factors have an influence on the price of a condominium insurance policy, including:

  • The location of the building (condominium insurance in Montreal will not cost the same as that in another city);
  • The year of construction of your condo;
  • The coverage level;
  • The number of deductibles;
  • The claims history.

Does condo insurance cover special assessments?

Condo insurance frequently includes loss assessment coverage, sometimes known as special assessment insurance. It protects condo owners from being held financially accountable for the repair expenses or damages to communal property.

How to Calculate the Cost of Condo Insurance

Based on these criteria, it’s possible to ask multiple insurance companies for quotes to compare them. You can also change the various deductibles to see the impact on the premium amounts.

In addition to the cost of insurance, co-owners must pay special contributions related to the establishment of the insurance fund made compulsory by law.

Trust Condo Strategis with Your Condo Property Management

Condo Stratégis, a specialist in condo property maintenance management, manages over 4,000 units in more than a hundred buildings, with different sizes and issues. For the management of your building, call on the condominium managers from Condo Stratégis and their multidisciplinary team (lawyer, CPA, building engineer, etc.) specializing in condos.