Your corporation’s policy vs. your unit policy
Every Ontario condo corporation must insure the building. That master policy generally covers the common elements, such as hallways, lobbies, the roof, parking garage and amenities, and the units as they were originally built (the “standard unit”). What it covers inside your unit, and what it leaves to you, depends on the corporation’s declaration, by-laws and standard unit description.
A condo unit owner policy fills in the parts the corporation’s policy does not cover. In Vaughan I see two common situations: owners of newer towers around the VMC, many of them first-time buyers or investors, and owners of older low-rise buildings and condo townhouses in Woodbridge, Maple, Concord and Thornhill, where units have often been renovated over the years. Both need a policy matched to their own building.
What a Vaughan condo policy should address
Improvements and betterments
Upgrades beyond the standard unit, such as hardwood or upgraded flooring, a renovated kitchen, new cabinetry, built-ins or light fixtures, are usually your responsibility. Builder upgrades you paid for at purchase can count too. Keep a list with approximate costs so your improvements limit is realistic.
Deductible assessment and the Condominium Act
Ontario’s Condominium Act, 1998 allows a condo corporation, in certain circumstances, to add the deductible on its policy to the common expenses of the owner responsible for the loss or of the unit where the damage started, often as set out in its declaration or by-laws. Corporation deductibles, especially for water damage, can be significant. Your policy’s deductible assessment coverage should be at least as high as the deductibles that could be passed on to you, so I ask for the corporation’s insurance certificate before recommending a limit.
Loss assessment
If the corporation has a loss that its policy does not fully cover, it may charge owners a share through a special assessment. Loss assessment coverage can help with your share for an insured type of loss, up to your policy limit.
Water damage from the unit above
Water is one of the most common condo claims: a burst pipe, an overflowing tub or a failed washing machine hose in the unit above. Who pays depends on where the water came from, what was damaged and the corporation’s rules. Your policy can respond to your contents and improvements, and liability coverage matters if water from your unit damages others. Water leak sensors and shut-off valves are worth asking about; some insurers recognize them.
Contents
Furniture, electronics, clothing and items in your storage locker. Some categories, such as jewellery, watches and bicycles, may have lower limits unless listed separately.
Personal liability
Protection if you are legally responsible for injuring someone or damaging property, including damage to other units or the common elements.
Additional living expenses
Extra costs for somewhere to stay if your unit can’t be lived in while repairs are being made after an insured loss.
Renting out your Vaughan condo
Many units around the VMC are owned by investors. If you rent your condo to a tenant, an owner-occupied policy is not the right fit. You need a rented condo (landlord) policy that covers your improvements, liability as a landlord and, where available, loss of rental income. Your tenant should carry their own tenant insurance for their belongings and liability. Short-term rentals are treated differently by most insurers, and many condo corporations restrict them, so tell me about that use up front. Landlord insurance · Tenant insurance.
What to bring for a quote
- The corporation’s insurance certificate (your property manager can provide it), including its deductibles
- The declaration and by-laws, or at least the standard unit description and any by-law about deductibles
- A list of upgrades made by you or a previous owner, with approximate costs
- The approximate value of your belongings
- Whether you live in the unit, rent it out, or both
- Your current policy and renewal date, plus any claims in recent years
Closing on a new unit? Your lender will usually want proof of insurance before closing. Send me your closing date and the corporation’s insurance details when you have them, and I’ll help you get ready. For general information about condo coverage across Ontario, see my condo insurance page.
How I work with Vaughan clients
I don’t have an office in Vaughan. Most clients prefer to handle everything by phone, video call, text, WhatsApp or email. If you’d rather meet in person, I can arrange to meet you somewhere convenient near you. I’m available seven days a week: weekdays 8 a.m. to 10 p.m. and weekends 10 a.m. to 8 p.m.
Coverage descriptions are general. Your policy wording, limits and exclusions, and your corporation’s declaration and by-laws, determine what is covered. Availability and premiums vary by insurer and by your circumstances.