Just like you, all insurance policies are unique. Although this information can help you navigate your insurance questions, this is not insurance advice and some details may not pertain to your specific risk. If you have a question about your insurance policy or coverage, never hesitate to give us a call.
Condo Insurance
Buying a condo and making it your own is such an exhilarating and complicated experience! With your condo corporation and mortgage company’s insurance expectations, it can be a lot to digest. Our Broker experts at Cassidy & Young are here to help. With customizable policies to ease your mind and keep you and your possessions safe.
Condo insurance policies have different requirements than homeowner policy for several reasons. Whereas homeowner policies need to insure every aspect of a home, condo policies are more nuanced as the condo corporation has a stake in each unit and the common area’s.
You’ll notice that most condo units look the same, with the same basic features like kitchen cabinets, plumbing fixtures, floors, doors and windows. These aspects of the unit are typically covered under the condo corporations policies “standard unit items”. That being said, every condo corporation will be different and its essential that you thoroughly examine the condo corporations by laws before purchase.
If you improve the space, it is important to note that this will change what is protected under the condo corporations by-laws. Any improvements or betterments made to your unit, whether by yourself or a previous owner, will then need to be captured under your own separate condo insurance policy.
An amazing advantage of moving into a condo, is that many of them, especially high rise units, are outfitted with extra security measures that can provide discounts on your condo insurance. For example, if you have a secured entrance that’s outfitted with a security guard, 24-hour video surveillance, intercom etc. there will be additional savings at no cost to you!
Despite condo insurance being generally necessary for all, its actually quite personal. Rating factors are very specific not only to the physical condo itself, but also to the geographical area you have purchased in as well as you as a person. The list below details common rating factors that insurance companies look for when determining how much to charge for your insurance.
- Your insurance experience. How long have you had property insurance for? Has it been continuous?
- Have you historically paid your insurance policies? Have you ever been cancelled for non-payment?
- What is your claims history like?
- How is your credit score?
- How old is your condo?
- What is the square footage of your condo? How many bedrooms/ bathrooms?
Of course, not all of these factors have an equal impact on your rate, but its important to understand what happens behind the scenes when insurance companies are determining what premium to charge you.