What Does a Condo Corporation's Insurance Cover in Ontario and What Is Left to You?
A condo corporation's insurance covers the units as originally built and the common elements, and you are left to insure what is yours beyond that. Under sections 99 and 102 of the Condominium Act, 1998, 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.
The corporation's policy does not cover improvements or non-standard parts of a unit. Fixtures, furnishings, equipment and personal property are not part of a standard unit, so owners should insure them themselves. The Condominium Act does not itself make owners carry insurance, but the corporation's governing documents may require it. Tenants are not legally required to have insurance unless their lease or the governing documents require it.
Deductibles matter too. The corporation pays the part of an insured loss below its deductible, but where an owner's own act or omission causes the damage, the lesser of the deductible or the repair cost is charged back to that owner's unit. A by-law can make owners liable in more situations, such as accidental damage where no one is at fault. Check your declaration and by-laws, and ask a lawyer or insurance broker if unsure.
Key takeaways
- 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.
- Improvements, non-standard parts of a unit, fixtures, furnishings, equipment and personal property are not covered by the corporation's policy.
- The Condominium Act does not itself require owners to carry insurance, but the governing documents may, and tenants need it only if their lease or those documents require it.
- Where your own act or omission causes damage, the lesser of the deductible or the repair cost is charged back to your unit, and a by-law can extend this to more situations.