Understanding condo insurance and how it works.
Understanding condo insurance and how it works.

The popularity of condos in Montreal has increased significantly in the last decade due to the skyrocketing prices of houses and multiplexes.

In comparison, the prices of condos have remained accessible to many buyers. Condos are also easier to maintain and are usually located near major utilities and commercial establishments.

Because of the lower prices of condos and many benefits of ownership, many buyers are drawn to investing in condos in Montreal. But did you know that condo insurance premiums can also be cheaper than standard home insurance?

How much does condo insurance cost in downtown Montreal?

We asked our partners to run simulations using their exclusive access to provide us with data about condo insurance prices in the metropolis.

Let’s take a look at the average prices of condo co-owner insurance so you can compare and save money.

Home insurance for condos: How does it work?

Risks covered by condo insurance in Quebec.

First, let’s take a moment to explain how homeowners insurance works for condo buildings.

What you need to understand is that it is very different from a house. In condo insurance, there are 2 types of insurance to pay, namely co-owner’s insurance and union insurance.

Co-owner insurance

Condo co-owner's insurance covers your personal property, your civil liability, and the improvements you have made to your condo since its construction or purchase.

Union Insurance

The union's insurance covers the building, common areas, and private areas at the time of construction, i.e. their original state.

As a co-owner, you must buy your co-owner insurance to cover the contents of your unit and any improvements thereon. The union’s insurance premiums are generally shared by all co-owners and form part of your monthly condo fees.

Condo Insurance Prices in Montreal based on the owner’s age

How much does insurance for a condo in Montreal cost? What makes the policy premiums vary among insurers? To find out, we present various simulations to give you a good idea of the costs and the factors that affect price.

The characteristics used in the calculation of the premiums are:

  • 100-unit condo building
  • Secured area 
  • Fire resistant construction
  • Electric heating
  • Fire alarm connected to a central monitoring station
  • Deductible $1,000
  • Non-smoking customer
  • Mortgage on the building
  • $2 Million in Civil liability 
  • Optional coverage:  Water damage included
  • The customer has a multi-policy discount (auto and home)


Let’s start by looking at various ages of unit owners. As you can see, varying the customer’s age, while keeping all other characteristics the same, changes the price but only slightly. Between the ages of 25 and 65, we’re talking about a price difference of only $150 per year.

For a condo worth $300,000 and furnishings valued at $35,000, the price is around $600 a year, or $50 a month. Hence, age does have an impact but it’s certainly not the most important one.

Condo co-owner Insurance Prices – $300,000 condo

With moveable assets of $35,000

Age of Client

Annual Premium

25 years old

$657

35 years old

$600

45 years old

$567

55 years old

$520

65 years old

$506

*Prices are indicative only. No price guarantee offered.

Condo Insurance in Montreal based on the Property Value

Condo insurance types in Quebec.

Now, what about the value of the insured property? The co-owners insurance you take out covers your movable property, your civil liability, and improvements made to your unit.

Civil Liability rarely changes, and is usually set at 2 million. However, it is often the amount of personal property to be insured that will vary the most. Renovations and improvements made to your condo must be included in the amount of personal property.

Will varying this amount of protection have a significant impact on the price of the premium?

For illustration purposes, we have used these characteristics:

  • 100-unit Condo Building 
  • Secured area 
  • Fire resistant construction
  • Electric heating
  • Fire alarm connected to a central station
  • Deductible $1,000
  • Non-smoking customer
  • Mortgage on the building
  • Civil liability of $2 million
  • Optional coverage: Water damage included
  • The customer has a multi-policy discount (auto and home)

As you can see in the following table, the annual premiums vary significantly depending on the value of the property insured.

We can, therefore, say that it is one of the factors having the most impact in the calculation of the premium.

Condo co-owner Insurance Prices – $300,000 condo

With moveable assets of $35,000

Condo Value

Insurance Premium for 45-year old client

$200,000

$567

$300,000

$567

$400,000

$567

$500,000

$567

$750,000

$567

$1 Million

$567

*Prices are indicative only. No price guarantee offered.

Condo Insurance in Montreal based on the number of units in a building

Factors that influence the price of condo insurance.

Does the number of units in a condo building significantly affect the price of condo insurance premiums? Does living in a 100-unit building cost more than living in a 6-unit building?

To obtain the answer, our partners carried out the test while keeping these contract characteristics:

  • Secured Area 

  • Fire resistant construction
  • Electric heating
  • Fire alarm connected to a central
  • Deductible $1,000
  • Non-smoking customer
  • Mortgage on the building
  • Civil liability of $2 million
  • Optional coverage: Water damage included
  • The customer has a multi-policy discount (auto and home)

The result of the simulation is striking: the number of units in a condo building clearly affects the price of condo insurance premiums.

Condo co-owner Insurance Prices in Montreal

With personal property of $35,000

Number of units in the building

Annual Premium

6 units

$347

25 units

$389

50 units

$450

100 units

$567

300 units

$805

*Prices are indicative only. No price guarantee offered.

What is the Cost of Union Insurance in Montreal based on your Share?

Let’s talk briefly about union insurance. In Montreal, only 6 insurers agree to provide syndicate of co-ownership insurance.

Prices vary greatly depending on too many factors to simulate. However, it is important to understand how YOUR premium is calculated based on your co-payment.

Let’s take an example: you live in a condo building with only 6 units. The syndicate insurance premium costs $3,000 per year. The 6 co-owners share the annual premium according to their relative share.

*The share is in fact the value of a person’s unit in relation to the total value of a building. For example, if you own a $500,000 condo in a building with a total value of $1,500,000, you have a 33% share.

The following table shows the individual premiums to be paid for various clients based on the relative value of their condo unit.

 


Relative Value


Total Annual Premium


Individual Premium

Condo 1

30%

$3,000

$900

Condo 2

20%

$3,000

$600

Condo 3

35%

$3,000

$1,050


Condo 4


15%


$3,000


$450

It is also important to note that under Quebec law, condo owners must have liability insurance. For condo buildings with 12 units or less, the mandated liability insurance is $1 million. If the building has more than 12 units, the mandated liability insurance goes up to $2 million.

Liability insurance which is part of condo co-owner insurance provides coverage in case someone sustains an injury while on your property.  It also covers damage you cause to another person’s property.

FAQS on condo insurance in Montreal

To help you understand condo insurance better and be able to evaluate the type of coverage you need, we present below some frequently asked questions to guide you.

What does the master condo insurance or syndicate insurance cover?

The master condo insurance or syndicate insurance covers damage to the building, all common areas, and your standard unit. It does not cover any improvements you have made to your unit or your personal belongings. For example, if a burst pipe damages your flooring, the master policy will pay for replacement of your original flooring. If you upgraded it, you are responsible for the difference in cost. You own condo insurance can help pay for this.

What is additional living expenses coverage?

The condo unit being temporarily unfit for occupancy due to damage such as water damage or fire is not something anybody wants to think about. However, it does happen. If it does, you will need to live elsewhere while repairs are being done.  Your condo insurance policy can ease the burden by paying for additional living expenses.

What is the right way to compare insurance policies and prices?

Before you choose a condo insurance policy, it is necessary to compare quotes from different providers. Price is an essential factor for condo insurance but the extent and quality of coverage is more important. Ensure that the policy you choose provides sufficient coverage for your financial protection. You should also choose a deductible amount that you can pay out of pocket for any loss or damage.

What improvements to a condo unit that are covered by condo insurance?

Improvements to the unit include anything you provided or upgraded after you purchased your condo. Some examples are new kitchen cabinets, change of vinyl flooring to hardwood floor, kitchen counter, etc. These improvements can be covered by condo insurance along with your personal property.

Is condo co-owner insurance mandatory in Quebec?

The civil liability coverage provided by condo co-owner insurance is mandatory and could be for $1 million or $2 million, depending on how many units are in the building. It is in your best interest as a condo owner to have supplemental coverage for your personal property and improvements to your unit because these are not covered by the condo syndicate insurance.

The declaration of ownership in your condo building may also require certain types of coverage such as water infiltration or sewer back-up.

The bottom line: You need to get the right insurance policy that is tailored to your needs and budget. With the right coverage, you can enjoy the ownership of your condo with total peace of mind.

How to find condo insurance at the best price in Downtown Montreal?

Are you motivated to find the best price for your condo insurance in Montreal? The secret is to shop and compare multiple quotes.

Never accept the first offer you receive from an insurer without taking the time to obtain other quotes.

Insurance prices vary greatly from one company to another. By comparing, you can save up to 50% and more on your policy.

Compare Insurances Online is a free online platform that allows you to obtain 3 condo insurance quotes online, free of charge!

Fill out the form below and get free quotes to compare and save on your condo insurance in Montreal!

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