Why Condo Owners Should Have Personal Insurance

Owning a condo is a great way to enjoy the perks of homeownership without the hassle of maintaining an entire property. But when it comes to protecting your investment, relying solely on your condo corporation’s insurance can be risky. That’s where personal condo insurance comes in—it helps cover what the master policy doesn’t, giving you peace of mind in case the unexpected happens.

What Your Condo Corporation’s Insurance Covers (And What It Doesn’t)

Every Condominium Corporation carries a master insurance policy that typically covers:

• The building’s structure,

• Common areas like hallways, lobbies, and amenities,

• Liability for accidents in shared spaces.

Sounds pretty solid, right? Well, here’s the catch: this coverage does not extend to your unit’s interior, your personal belongings, or additional costs you may face if damage forces you to move out temporarily. That’s why having your own insurance policy is essential.

Why the Standard Unit Bylaw Matters

Each Condominium Corporation should have a Standard Unit Bylaw (SUB) that outlines what is considered part of the standard unit and what falls under your responsibility as an owner. This bylaw determines what your condo corporation’s insurance will cover and what you need to insure yourself.

For example, if the SUB states that original fixtures—like cabinets and flooring—are covered by the master policy, you may only need insurance for any upgrades you’ve made. But if it specifies that unit interiors are your responsibility, then your policy should cover drywall, flooring, fixtures, and more. Knowing your condo’s SUB ensures you’re not caught off guard when making an insurance claim.

Must-Have Condo Insurance Coverages

When choosing a policy, look for these key coverages to keep yourself financially protected:

1. Loss Assessment Coverage (Special Assessment Protection)

Sometimes, your Condominium Corporation may issue a special assessment to cover unexpected expenses—like major repairs or shortfalls in the reserve fund. Loss Assessment Coverage (also called Special Assessment Coverage) helps protect you from having to pay out-of-pocket if a covered assessment is issued.

2. Personal Property Coverage

Your furniture, electronics, clothing, and valuables aren’t covered by the condo corporation’s policy. If fire, theft, or water damage ruins your stuff, personal property coverage helps you replace them—so you don’t have to cover the cost alone.

3. Unit Improvements and Betterments Coverage

Have you upgraded your kitchen counters, installed hardwood floors, or added built-in shelves? These enhancements may not be covered by the condo corporation’s master policy. Make sure your insurance includes coverage for any improvements you’ve made.

4. Personal Liability Coverage

Accidents happen. If someone is injured inside your unit—whether they slip, trip, or fall—you could be responsible for medical expenses or legal fees. Personal liability coverage helps protect you from these unexpected costs.

5. Additional Living Expenses (ALE) Coverage

What if a fire or water damage makes your condo unlivable? ALE coverage helps cover the cost of temporary housing, such as a hotel stay or short-term rental, so you’re not left scrambling for a place to live.

Choosing the Right Policy

The best way to protect yourself is to carefully review your condo corporation’s master policy and Standard Unit Bylaw to see what’s covered—and what’s not. Then, work with an insurance provider to fill in the gaps and make sure you have complete protection.

At Bern Condominium Management, we help condo owners make sense of their insurance needs. Understanding your coverage is key to protecting your home and finances. If you have any questions, our team is ready to provide clear, practical guidance tailored to your situation.