Revealed – 2022's top Canadian condo insurance providers

Condominiums have become an increasingly popular dwelling of choice for families in Canada’s largest cities, with almost 1.9 million households opting for high-rise living, according to figures from the latest census. The number accounts for about 13% of all Canadian families and illustrates a waning appetite for a suburban lifestyle among the millions of residents of the nation’s biggest metropolitan areas.

Vancouver boasts the country’s highest percentage of condo dwellers, making up almost a third of its population. Calgary ranks second with about 22%. Abbotsford-Mission, Kelowna, Toronto, and Edmonton follow, with about a fifth of each city’s households favouring condo living. Victoria, Saskatoon, Montréal, Québec, Ottawa-Gatineau, Guelph, and Regina also have figures above the national average.

As the preference for the high-rise lifestyle grows, insurance providers have also stepped up efforts to come up with products tailored to the unique needs of Canada’s condo dwellers.

How does condo insurance work?

Condo insurance, also known as strata insurance in British Columbia, is a type of home insurance policy that protects the owners against damages to the unit’s interior and its contents, and from liability for injuries that occur within it. This kind of coverage differs from condominium corporation insurance, which covers the building’s structure outside of the unit – including common areas like lobbies, hallways, stairwells, and elevators.

Read more: Many policyholders don’t understand their condo insurance – IBC

Condo dwellers often already pay for common area coverage through their condominium fees. To have personal condo coverage, however, they need to purchase the policy themselves. The purpose of personal condo insurance is to fill the coverage gap that condominium corporation policies leave.

What does condo insurance cover?

Condo insurance provides coverage for the owner’s personal belongings and the interior of the unit. It also covers damage to other units resulting from incidents originating from the policyholder’s property. This means that if a fire from their unit causes damage to a neighbouring property, condo insurance will pay out the cost.

Apart from these, standard coverage may include:

• Damage to improvements made to the interior of the unit
• Electrical or fire damage
• Incidents of theft and burglary
• Loss assessment
• Living expenses, if the unit becomes unhabitable
• Personal liability
• Storage lockers
• Vandalism
• Wind and hail damage

Condo insurance also provides protection from some types of water damage, including those resulting from burst pipes and leaky appliances from a neighbouring unit. This policy can be extended to cover heavy rainfall, overland flooding, and sewer back-up. Coverage for identity theft and valuable items such as jewellery and artworks can also be purchased as an add-on.

Read more: Controversial pricing method responsible for runaway condo insurance costs - report

Most personal condo policies, however, do not cover normal wear and tear of the unit, and damages caused by animals, or those resulting from war and terrorism. Flood cover may also be excluded if the unit is in a flood-prone area. Intentional losses and those arising from fraudulent and criminal activities are not covered as well.

How much does condo insurance cost?

Just like with other policies, insurance providers base the premium prices of personal condo coverage on the unit owner’s likelihood of making a claim. Insurers calculate this probability using a range of factors, including the condo’s age, geographic location, market value, construction materials, improvements and renovations done, replacement costs of the insured contents, and the type and amount of coverage needed.

Read more: Condo insurance rates in Canada – what’s happening?

The table below shows a sample calculation from the real estate marketplace WOWA.ca regarding how much premiums cost for a two-bedroom condo in four of Canada’s major cities. The figures are up to date as of February 2022.

Source: WOWA.ca

What do Canada’s top condo insurance policies cover?

Condo insurance policies differ between insurance providers and determining which one offers the best coverage often depends on the specific needs of a unit owner. Here is what Canada’s top home insurance companies are providing in terms of condo coverage. The list is arranged alphabetically. All details are correct as of March 2022.