Condo owners: what your policy covers
In a condo, two policies work together. The syndicate’s policy insures the building. Yours covers everything that is yours alone.
The syndicate’s insurance
- The building: structure, roof, windows, common areas
- Your unit as described in the syndicate’s “description of the private portions” (often called the reference unit)
- The syndicate’s own liability
Your condo owner’s policy
- Your belongings
- Your improvements
- Your civil liability
- The syndicate’s deductible if you’re billed for it
- Special assessments after a loss
- Your additional living expenses
What your policy pays for
1
Your belongings
Furniture, clothes, electronics, what’s in your lockerExampleA fire in the building destroys your couch and computer. The syndicate repairs the walls. Your policy replaces the couch and computer.
2
Your improvements
Anything beyond the description of the private portions, added by you or a previous ownerExampleYour kitchen has quartz counters and hardwood floors, while the description lists laminate. After a water leak, the syndicate pays for the laminate equivalent. Your policy pays the difference.
3
Damage you cause to others
Civil liability · mandatory: $1,000,000 (under 13 units) or $2,000,000 (13 units or more)ExampleA guest slips in your entrance and hurts their back. If they sue you, your liability coverage pays your defence and the compensation, up to the limit.
4
The syndicate’s deductible
When the syndicate bills you for itExampleYour water heater leaks and damages three units. The syndicate’s insurance pays for repairs, then the syndicate bills you its $25,000 deductible, since the water heater was in your care. This coverage pays that amount, up to its limit.
5
Special assessment
Your share of a bill split between co-ownersExampleAfter a major loss, the syndicate’s insurance falls short and each co-owner gets an $8,000 bill. This coverage can pay it, depending on your policy’s conditions.
6
A place to stay during repairs
Additional living expensesExampleThe building is evacuated for three weeks after a fire. Your policy pays for the hotel, and what your meals cost beyond usual.
What often surprises people
The syndicate’s deductible can be very high. Ask the syndicate for the amount. If your “syndicate deductible” coverage is lower, the difference is on you.
A previous owner’s upgrades are yours. If the kitchen was redone before you bought, it’s still yours to insure.
Renting out your unit changes the risk. Tell your insurer. Coverage for lost rent exists.
Who pays in these situations?
| What happens | Who pays |
|---|---|
| Smoke from a fire in another unit damages your walls and couch | The syndicate repairs the walls. Your policy pays for the couch, minus the deductible. |
| Your dishwasher leaks into the unit below | The syndicate’s insurance repairs the building, but the syndicate can bill you its deductible, since the appliance is in your care. Your “syndicate deductible” coverage pays it. |
| Your bike is stolen from your storage locker | Your policy (belongings), minus your deductible. |
| A water leak ruins the hardwood floor you installed | The syndicate pays for a basic floor. Your policy pays the difference (improvements). |
Before you renew, check
- Do you know the syndicate’s deductible amount?
- Have you read the description of the private portions (reference unit)?
- Does your liability meet the required minimum: $1,000,000, or $2,000,000 in a building with 13 units or more?
- Are your improvements insured for their real value?
Other profiles: Tenant · Homeowner · Plex owner
A question about your own policy?
This site explains the general rules. Only your insurer can say what your policy covers: ask your agent or broker. This site doesn’t make recommendations. To choose coverage, also talk to a certified professional.
- Check an agent or broker: AMF register, at lautorite.qc.ca
- Insurance information: Autorité des marchés financiers
- General insurance questions: Centre d’information sur les assurances, 514-288-4321 or 1-877-288-4321
- Injuries in a car accident: SAAQ
- Professional conduct: Chambre de l’assurance de dommages