Does condominium insurance seem complex and difficult to understand? Sometimes, it is enough to be well informed and well advised. Ask appropriate questions from insurers or  insurance brokers who specialize in home insurance among our partners.

Co-owners, insure your condo at the best price!

Home Insurance for Condo: Why do you need two Insurance Contracts?

If a disaster occurs in your condo unit, it would not only be the terms of your personal insurance contract that would be involved, but also those of the condo; particularly if other housing units and / or common areas are affected.

A condo is also mistakenly called condominium unit (condominium). As this designation indicates, by becoming the owner of your home, you also become co-owner of the property (building and land).

The condominium (legal entity) made up of directors (corporation), manages the portion of the property that belongs to each of the owners of the various units (condo) such as:

• the lifts
• parking
• entry hall
• common areas
• swimming pool

As a condo owner, you must take out a condo home insurance, independently from the other co-owners.

In addition, the law requires the condominium corporation to take out an insurance type for co – ownership against fire, theft and other risks usually covered.

The amount of condo insurance coverage must match the building’s new value.

Taking out condo insurance: What particulars should you know?

The condominium is legally obliged to inform the insurer of any claim to the immovable.

However, the Civil Code of Quebec states that any “interested person” may also contact the insurer to declare a claim.

As a co-owner, you are an interested party given that you incurred damage to the property or losses due to fire, flooding, etc. that may affect the value of your condo.

Thus, you have every right to make a claim in respect to the part of your dwelling owned by the condominium or a common area.

Joint ownership and co-ownership insurance: What is the share of each?

When a claim is made, the first question is usually: who pays what? Only 50% of co-owners know the coverage that the corporation has included in the condominium insurance policy. Be informed!

Co-ownership insurance coverage

What damages does a condo insurance cover?

The damage covered by your condo insurance is very similar to that of conventional home insurance:

• Fire (including forest fires);
• Theft (or attempt);
• Vandalism;
• Lightning;
• Explosion;
• The impact of vehicles or other objects;
• Smoke;
• Riot,
• Water damage caused by overflowing or leaking, water pipes
• Sanitary facilities:
  • toilet
  • bath
  • dishwasher

On the other hand, damage that is not caused by “clean” water is not covered. For example:

• A backed-up sewer
• Infiltration of water through the roof or windows (door) of the basement
• River overflow

It is therefore recommended that these risks be added to your condominium insurance coverage.

How much can a condominium insurance recompense?

Your condo insurance contract provides a limited amount for compensation of your property. If you have turned a room in your home as a home theater or a recording studio (music), these limitations may not be suitable for you. You can then request an increase in your insurance coverage for that specific property.

How does condo home insurance assess the amount to be reimbursed regarding your property?

The amount reimbursed will be based on what you have previously chosen when you have discussed your policy with your broker. Did you opt for replacement of destroyed or stolen properties?

Based on current value at the time of loss

This option takes into account the depreciation of your assets and their wear and tear.

For example:

• 10 years ago, you bought your stove for $ 800
• Today, the same model sells for $ 1,000
• The depreciation was set at $ 40 / year ($ 40 x 10 years) $ 400
• The amount paid in compensation will be $ 600

Based on replacement value

The replacement or repair cost option provides for the replacement of your assets without taking their depreciation into consideration.

It can also be referred to as “worthiness”.

For example:

• 10 years ago, you bought your stove for $ 800
• Today, the same model sells for $ 1,000
• The amount paid in compensation will be $ 1,000

However, if you do not wish to replace the stolen or destroyed property, you will receive a cash amount equivalent to the depreciated value.

Regarding the building of the condo

The insurance of the condominium will cover the rehabilitation of the premises according to replacement value, but following the original plans used during the construction.

If you or your predecessors have made improvements (called surplus value), the difference in repair costs will be covered by your personal insurance.

Since your insurance coverage cannot exceed the amount stipulated in your contract when you insured your condominium, it is important to make a fair evaluation of your property when you select your condo insurance.

Does your condominium ensure you avoid paying for the provident fund?

Since 1994, the law obliges the condominium corporation to establish a contingency fund and to collect the contributions of the co-owners.

Condo fees

As a co-owner of your building, you must pay a hundred dollars each month to your condominium syndicate to pay for the common maintenance costs of the common areas and the building (including the part in your condo).

These costs also include your share of the condominium insurance (common areas and building structure).

The contingency fund

According to the Quebec Civil Code, the condominium corporation can only use the provident fund for major repairs or reconstruction such as after a disaster. The deductible must therefore be paid with the condo fees or by means of a special contribution.

If the amount contracted by the union to ensure co-ownership is not sufficient to cover the repair or reconstruction of the common areas or the structure of the building (also in your condo), the amount missing will still have to be paid.

Will the contingency fund be sufficient?

Article 1072 of the Civil Code stipulates that the co-owners’ contribution to the provident fund must be “at least 5% of their contribution to the common expenses” according to Protégez-Vous (July 2016). This percentage is clearly insufficient for 41% of Quebec’s co-owners. In this case, you and the other co-owners of the building will have to pay, at one time, an amount which, depending on the size of the work, can be quite high.

When you insure your condo, it can be very advantageous to contract an endorsement if the insurance coverage taken out by the condominium is too low to cover the costs of reconstruction or repairs in the event of a disaster. Thus, it is your co-owner’s insurance that will cover the shortfall to perform the work.

Check with a broker or insurer from Compare Insurance Online-Home Insurance network about co-ownership insurance coverage you may consider to be adequately protected if the condominium does not have sufficient funds and you were required to pay a portion of the cost of rebuilding or repairing major damages.

Factors to establish cost of a condominium insurance

The insurance company determines the cost of your co-owner insurance based on:

Some features of the condominium:

• The construction and coating materials used
• The year of construction
• The place of construction
  • City or countryside?
  • Historic or new? Commercial or residential?
  • Sector with high crime rate (fire, theft, vandalism)?
• The type of heating system and presence of auxiliary heating
• The cost of rebuilding the improvements you’ve made to your condo
• The number of dwelling units that include co-ownership
• Presence of commercial premises in the building

Everything depends on the proper maintenance of the building.

• The fire protection system of the place where the building is located.
• proximity
  • Fountains
  • The fire department
• The presence of sprinklers in the building.

• Your track record for claims

If you have already made claims, the insurer will want to know:

• How much, and
• What type of claims.

• Your choice of coverage
• Standard or
• Specific risks

• Added riders (additional protections)
• sewer backup
• water infiltration

• The amount of your deductible
• The replacement value of your assets
• Credit Information

Lower your condominium insurance premiums

If you think that the premium offered by your insurer is too high, there is the possibility of reducing it.

1. If you are ready to consolidate your home insurance for your condo with your car insurance under the same insurer, the company will be more inclined to reduce your premiums.
2. You can lower your co-owner insurance premium if you raise your deductible, for example, from $ 300 to $ 500.
3. You can also insure your condo at a lower cost if you have an alarm system connected to a central station. Installing water leak sensors can also reduce your condo insurance premium.
4. When you take out your condominium insurance, mention the major works that will have to be undertaken concerning, among others, plumbing, heating and electricity.
5. Lastly, ask for a free quote, shop for your insurance premium for a condo. Home insurance can vary considerably from one insurer to another.

Receive a Quote for your condo home insurance

It is to your benefit to take advantage of the fact that home insurance for condominiums is a very competitive sector.

Compare Insurances Online- Home Insurance gives you the opportunity to receive a free quote from one of our partners (all brokers and insurers specializing in condo insurance) in your area by completing the request form.

Decide if you accept this offer. Make your decision without any obligation. Compare Insurances Online is not an insurer but a web platform gathering the best condo insurance experts and the  best condominium home insurance  companies.

Brokers and insurers that are part of our network are independent of one another. While they take advantage of our condominium insurance website to let you know their services, you benefit from:

• Competitive prices
• Professional service
• Information and expert advice
• and more.

Contact Compare Insurances Online – Home Insurance to compare condo insurance policies that will meet your needs, your situation and your expectations.