Condo Insurance Toronto
What if you get the lowest condo insurance rates, but you don’t have all your belongings protected against a major incident? It’s not uncommon to have a flood in a condo unit. Are you prepared? At Sharp Insurance, we factor in value into your insurance experience.
Is Condo Insurance Mandatory?
Having condo insurance is not the law. You won’t get a fine for not having insurance, but you will be in major debt if anything happens. From a leak to a major fire during renovations, it makes sense to have adequate insurance.
Owning a condo is a huge responsibility just like buying your first home. The excitement, the new smells – everything you experience is ideal only if you’ve thought about the worst-case scenarios. While no one wants to walk around with constant anxiety, it’s best to think about how you, your contents, and your new home needs to be protected.
How Much does Condo Insurance cost in Toronto?
You can ballpark your condo insurance premium but what should your policy include? Our skilled brokers are ready to help you figure out the best insurance rates for your unit, your content requirements and liability. In Toronto, nicknamed Hogtown, condos and high-rises are everywhere and living expenses run high. Your insurance rates will generally be higher, especially closer to the center of the city. Knowing what you’ll pay for a condo in each neighbourhood will help you navigate through the price range options.
The true advantage of choosing Sharp as your broker is that we deal with multiple insurers to make sure you’re set up for all your insurance needs. Your final condo rates depend on many factors, some you can control while others are out of reach.
Why do you need a personal condo insurance policy?
Everyone owns items that are worth something. Whether it’s a necklace from your grandmother or a pair of skis you can’t live without – you work hard for what you buy and so you need to protect it. Don’t tempt your luck- it’s necessary to carry adequate insurance protection for your items, emergency living expenses, and personal liability. Your condo corporation takes care of the building and common areas. Some exceptions are common, so ask our brokers in Toronto for the proper advice.
What does Condo Insurance Cover?
A personal condo policy protects you against injuries in your unit, damages to a visitor’s belongings, and expenses if you need to temporarily leave your comfy home while it’s repaired or rebuilt. You’ll be glad that you picked the right coverage if you have a fire, flood or someone steals your most precious items.
5 Main Condo Coverage Options:
- Personal items and property: protection for your necessary item, such as well as any of your personal belongings like clothing, kitchen gadgets, and furniture. Helps you repair or replace everything from the condo’s walls in. Upgrades to fixtures and flooring is also included.
- Personal Liability: protect yourself from lawsuits when people slip on your uneven steps, or snow-covered pathway. Don’t stress – make sure you’re covered for potential damage.
- Additional Living Expenses: a flood to your condo unit requires you to leave temporarily for repairs. Having the proper expense coverage and have one less thing to worry about.
- Improvements and Betterments: If you upgrade your counters or light fixtures, you’ll be covered.
- Loss Assessment: provides coverage for your share of any costs or a deductible amount that trickles down from the condo corporation’s loss from the building or common areas.
Did You Know?
You should review your condo corporation’s master policy as there are two different types that exist that may impact your personal insurance policy. For example, your plumbing and electrical systems may not be covered under the condo corporation’s policy.
What Risks are Covered under my Condo Insurance Policy?
A peril, or risk, is one of those insurance terms that may cause you confusion. While you may think you’re covered for all water damage to your condo, you’ll be surprised when you receive an enormous clean-up bill. Education is key to learning what types of risks you need full protection for.
Below is quick roadmap to the different types of perils:
- Impact by vehicle or aircraft
- Riot, vandalism, theft, and other malicious acts
- Electrical current
- Weight of snow (causing a roof collapse)
- Falling object
Perilsthat require an add-on (sometimes called endorsement):
- Water damage (e.g. damage from plumbing or appliances)
- Sewer backup
- Earthquake and landslides
What perils are not covered by my condo insurance?
A condo insurance policy is a requisite but even with a comprehensive policy, you’re not covered for everything under the moon. Some risks, or perils, can’t be covered due to activities and habits that the condo owner has.
6 Common Risks not covered under any insurance policy
- Damage caused by illegal activities
- Wear and tear
- Damage caused by insects, vermin, and animals (e.g. bedbugs)
- Water damage from frozen plumbing (while away)
- War, terrorism, nuclear incidents
As you see from the above list, condo owners must keep their abode well maintained and clean.
What are the Different Condo Insurance Options?
What’s good for one person is not good for everyone; this applies to finding your best condo insurance rate and coverage options. No two policies will be the same. Choose what you need and ask for advice from our brokers if you’re not sure – we’re here to help.
3 Levels of Condo Insurance
- Comprehensive – Covers the most risks for your condo. A risk is covered unless it’s specifically excluded in your policy.
- Named Perils or Basic – This insurance option lists only specific risks you’re protected from.
- Broad – this option will cover more risks but may have more limited coverage in certain areas.
Did You Know?
Expensive items, like watches and jewelry, are not automatically covered under your condo insurance policy. To carry enough insurance coverage for your pricey items, you’ll need additional coverage.
What is Optional Coverage for Condo Insurance?
While you should be covered for the standard condo insurance policy options, sometimes you’ll want to add extra protection based on your experience or needs.
5 Optional Condo Policy Options:
- Sewer Backup: covers damage from your back-upped sewer and drains
- Flood: covers damage caused by snowmelt, overflow of lakes and rivers, and precipitation.
- Earthquake: covers damage caused by earthquake, landslides, mudslides and other earth movements.
- Identity Theft: this coverage helps you cover losses if you’re the victim of identity theft, beyond the coverage you already have.
- Floaters: if you make a claim, a pre-determined limit amount is paid out. For certain items (e.g. art, jewelry, sports equipment), you may want additional coverage. A floater will extend the limit to better reflect the value of the item.
What are my Loss Settlement Options?
A loss settlement option is the amount that your insurance company pays you after a loss, such as a fire or theft. There are two main options to choose from: actual cash value and replacement cost.
Actual Cash Value
this is the market price or purchase price of the item, minus depreciation.
this is the cost to replace your belongings “as is.”
Did You Know?
ou can change your loss settlement options at any time. It’s essential to check the details of your insurance policy documents once a year.
How Much Coverage do I Need for Condo Insurance?
The amount of condo insurance coverage you need for a loss is calculated based on your policy limit. The policy limit is the maximum amount that will be paid out to you after an insured loss.
We recommend you carry $2 million for personal liability and $3 million for the content coverage minimum. You policy limit will change based on which insurance company you go with and what items you have coverage for. You can always talk with our condo insurance brokers in Toronto for advice on where to set your limits based on your lifestyle and budget.
How do I set my Deductible Amount?
First, what is a deductible? A deductible is the amount of money that you must pay to your insurance company after an insured loss. If there is damage to your home’s roof due to a hailstorm, for example, you can get the roof repaired. After you submit a claim, your insurance company will reimburse you for a certain amount, minus your deductible. You can change your deductible amount, and this will in part determine your insurance rate.
How much protection do I need for condo insurance?
The amount of condo insurance you’ll need depends on many factors but it’s key to protect yourself, your belongings, and potential legal fees. Protection is easy when you know the worst-case scenarios and how they could upend your life, if you don’t know how to handle them.
What is High Risk Condo Insurance?
Insurance for anyone deemed high risk could be tricky, as most insurance companies see your activities are riskier than others. Once major downfall of having the high-risk label is your insurance rates will generally be higher – if you get insurance at all.
Activities that are high risk to an insurer are:
- A high number of claims
- Insurance payments were missed
- Insurance policy was cancelled due to several reasons
As a condo owner, there may be ways to improve your chances of getting adequate insurance or being lifted off the high-risk list. Ask our experienced brokers for details on your situation.
The best way to get a good price on your condo insurance in Ontario is to work with a broker. We take care of the price shopping and get you the best condo insurance quotes in the province. We’ll also make sure you have the right coverage for your needs and get any discounts you’re eligible for.
What Factors Impact your condo insurance rate?
Like a homeowner’s policy, your condo insurance rate will change based on many factors.
11 Factors that Impact your Condo Rates
- Insurance and claims history
- Credit score
- The cost to repair your condo
- The condition of your roof, plumbing, heating & electrical systems
- Proximity to a fire station
- The crime and claim rate in your area
- Natural disasters in your area (frequency & severity)
- Condo location in relation to rivers and lakes
- Options: loss settlement, policy limits, deductible & coverage
Did You Know?
You’re required to carry a separate personal condo insurance policy, as your condo corporation’s master policy will not cover you for a host of things, including your personal items.
How to Get Cheaper Condo Insurance rates?
A condo owner, like a homeowner, will always be on the lookout for a lower insurance rate. But you don’t want to sacrifice the ultimate protection against multiple risks. Cutting corners will turn into a headache down the road. Don’t chance it to save a few hundred dollars. It’s easier than you think to get the best coverage options and condo insurance rates.
6 Tips to get lower condo insurance rates:
- Bundle condo & auto insurance policies
- Maintain your deductible at an affordable level
- Shop around for competitive rates – or let us to the legwork for you
- Make annual payments vs. monthly
- Get discounts that apply to your policy
- Review your insurance policy once a year or more
Did you know?
If you have a locker where you store personal items, like your skis or extra clothes, that is in another part of your condo building, your personal condo insurance policy will cover you in the event of theft or an insured loss.
How to Submit a Condo Insurance Claim
Insurance claims are made every day and one day you may have to take the plunge. At that time, our skilled brokers will guide you through everything from complex insurance terms to an easy claim process.
6 steps to submit a claim:
- Document the damage. Write down what happened (include time of day, date of incident). Take photos and videos. Get a copy of the police report, if possible.
- Submit the claim. You can do this at any time through our mobile phone app or online web portal. You can also give us a call. Or, you can submit the claim directly through your insurance company (the phone number can be found on your policy documents or their website).
- Keep your receipts. If you need to leave your home due to the damage, make sure you bring your receipts to get reimbursed for additional living expenses. If your claim is covered, you can get some help covering expenses.
- Make a list: include a complete list of everything that was damaged, destroyed or stolen. It helps if you have a home inventory list or video already made.
- Talk to a claims adjuster: A claims adjuster will talk to you as part of the claims investigation.
- Discuss the settlement offer with your broker: You may be able to use your own contractors.
Once you agree on a settlement, the repairs are completed, and your money (if applicable) reimbursed, your adjuster will close the claim. You’ll usually receive a payment by cheque but that depends on your insurance company.
Why Should I Choose Sharp Insurance?
Our brokers advocate on your behalf. We’re here to pave the way for you to have a clearer insurance path where submitting a claim or setting up a new insurance policy is better than expected. Here’s how we can show you we can help you plan your coverage for future purchases or to cover you now for your most precious investments.