Is condo insurance mandatory in Ontario and what must my policy cover?

The Condominium Act does not itself make owners carry insurance, but your condo's governing documents may require it. Check your declaration and by-laws first. Tenants are not legally required to have insurance unless their lease or the governing documents require it.

The corporation must insure the units and common elements against major perils such as fire and flood, and carry liability insurance for unsafe common areas or machinery. Directors' and officers' insurance is required under section 39. That policy does not cover improvements or non-standard parts of a unit, and fixtures, furnishings, equipment and personal property are not part of a standard unit.

Deductibles matter too. The corporation pays the part of an insured loss below its deductible, but where your own act or omission causes the damage, the lesser of the deductible or the repair cost is charged back to your unit. A by-law can make owners liable in more situations, such as accidental damage where no one is at fault. Many owners carry their own policy for these gaps, and an insurer or lawyer can help.