A Breakdown of Condo Insurance

What Does Condo Insurance in Toronto Actually Cover? (And Why You Need More Than You Think)

Maximizing your coverage, and your peace of mind.

Thinking of buying a condo in Toronto? Or maybe you already own one and are wondering, “Am I actually protected if something goes wrong?”

Let’s talk about condo insurance… because what you think is covered by your condo corporation’s policy… probably isn’t.

Whether you’re new to the condo game or deep in your homeownership era, understanding what your policy does and doesn’t include can save you thousands and a major headache down the line. Let’s break it down.

What Your Condo Corporation’s Insurance Covers

Here’s the deal: every building has a condo corporation (officially called a condominium corporation) that carries a master insurance policy. This policy typically covers:

✅ The building’s structure
✅ Common areas like the lobby, hallways, elevators, gym, and party rooms
✅ Sometimes, the original standard finishes in your unit (think builder-grade flooring, cabinetry, and countertops)

Sounds decent, right? But here’s the catch…

What the Master Policy Doesn’t Cover (And Why It Matters)

If you’ve upgraded your unit in any way—maybe added designer hardwood, installed a custom kitchen, or built your dream spa-like bathroom — those upgrades are your responsibility. The condo corporation’s policy won’t touch them.

And it definitely doesn’t cover:

Your furniture
Electronics
Clothing
Or any other personal belongings

That’s where personal condo insurance (also called a condo homeowner’s policy) comes in.

What Your Personal Condo Insurance Should Cover

If you’re getting a mortgage, your lender will usually require this kind of policy. But even if they didn’t? You’d still want it.

A good personal condo policy typically covers:

✔️ Your personal belongings
✔️ Upgrades you’ve made to your unit
✔️ Personal liability — like if someone slips and falls in your unit or if you cause damage to another unit (think: leaving the tap running and flooding the suite below)
✔️ Living expenses if your unit becomes unlivable due to an insured event (like a fire or flood)

The liability coverage is the real MVP here. Water damage, electrical fires, even minor accidents can turn into major expenses. Insurance helps make sure those costs don’t come out of your own pocket.

The Bottom Line (And Why This Matters in Toronto)

Condo living in Toronto comes with perks—location, lifestyle, and way less shovelling. But it also means shared walls, shared systems, and a master insurance policy that doesn’t cover your stuff or your specific space.

So here’s your reminder:
Your condo corporation’s insurance protects the building.
Your personal condo insurance protects you.

If you’re buying a condo—or already own one—but aren’t 100% sure if you’re fully covered, now’s the time to check. I’m always here to help walk you through it and connect you with trusted insurance pros who can get you set up properly.