Do co-owners need home insurance?

You may well ask if co-owners need home insurance, since the condo corporation already has an insurance policy. The answer is yes.

The fact is the condo corporation’s insurance does not cover your properties.

Also, your co-owner insurance covers civil liability. For example, your bathtub overflows and water seeps down into other condos. In this case, your insurance policy would apply and your insurer would compensate the individuals who suffered damage.

What is meant by improvements?

These are improvements chosen at the time of purchase or made by you over the years.

Examples include installing:

  • A heat pump;
  • New flooring;
  • Granite counters.

What else does co-owner insurance cover?

In addition to your civil liability and personal property, co-owner home insurance also covers any improvements you made to your condo, or improvements acquired at the time of purchase. 

If you suffer a loss, it’s your insurer who pays for these improvements, while the condo corporation reimburses the original value of the equipment. 


The original kitchen counter, valued at $800, was made of melamine. You replaced it with a granite counter, that costed $1,500.

The $800 that corresponds to the melamine will be reimbursed by the condo corporation’s insurance, while the difference to reinstall a granite counter, namely $700, will be paid by your co-owner insurance.  

Keep a list and your invoices

Keep a list of these improvements and the costs. This will make settlement a lot easier in the event of a loss. It will be simpler to determine what your co-owner insurance will reimburse versus the portion paid out by the condo corporation’s insurance.

This is why a condo is insured under two policies: one for the condo corporation and one for the co-owner occupier. 



Be prepared.
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