Condo Insurance in Canada: What Your Own Policy Must Cover
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Condo insurance is the policy a condominium unit owner buys to cover what the building's master policy does not. When you own a condo, two policies protect the same address. The condo corporation, called the syndicate in Quebec, insures the building and the common elements. Your own policy covers your belongings, your upgrades, your liability, and, in many cases, the corporation's deductible when a loss starts in your unit. This guide explains how the two fit together, what the law says in Ontario, Alberta, and Quebec, and how to choose your limits. For our other guides, see the insurance hub.
The gap between the two policies is where most surprises happen. A leak that starts in your bathroom can cost you the corporation's deductible, and in Alberta that charge can reach $50,000.
How condo insurance works
A condo building carries two layers of insurance. Each one has its own owner, its own limits, and its own deductible.
The corporation's master policy
The condo corporation buys a policy on the building and the common elements, and the cost is built into your condo fees. You do not choose its limits or its deductible, but you can ask the board or the property manager for a summary. The rules on what it must cover differ by province, as explained below.
Your unit owner policy
The Insurance Bureau of Canada (IBC) is clear that the corporation's policy does not cover your personal contents, improvements to your unit, or your liability (IBC, types of home insurance coverage). Your own policy fills that gap with these parts:
- Contents: furniture, electronics, clothing, and other belongings.
- Improvements and betterments: upgrades made by you or previous owners, such as hardwood floors or custom counters, up to a stated limit.
- Personal liability: injuries to others and damage you cause to other units or common areas.
- Loss assessment: your share of major property and liability losses on common property, up to a stated limit.
- Deductible coverage: the corporation's deductible when it can be charged back to you.
- Additional living expenses: extra costs if you must move out during repairs.
The deductible charge-back
This is the clause that costs condo owners the most. When damage starts in your unit, the corporation may be able to charge its deductible back to you, within limits set by provincial law. The rules are very different from one province to the next.
The table below summarizes the default rules in each province.
| Province | Corporation must insure | Deductible charged to owner | Owner insurance required by law |
|---|---|---|---|
| Ontario | Units and common elements, major perils, replacement cost (Condominium Act, 1998, s. 99) | Lesser of repair cost and deductible if owner, tenant, or resident caused the damage; a by-law can extend it (s. 105) | No, but governing documents may require it |
| Alberta | Units (excluding owner improvements) and common property at replacement cost, including flood and sewer backup where available | Up to the deductible, without fault, when damage starts in the unit, capped at $50,000 (Regulation, s. 62.4) | Not by statute; a by-law can require deductible insurance |
| Quebec | Whole building, amount sufficient to rebuild, appraised at least every five years (CCQ, art. 1073) | Only through common expenses, unless the co-owner is liable for the damage (art. 1074.2) | Yes: civil liability of $1,000,000 (under 13 units) or $2,000,000 (13 units or more) |
Ask the board for the current master policy deductible for water damage, which can differ from the deductible for other perils. Then set your own deductible coverage at least at that amount.
Rules by province
Condo law is provincial, so the obligations change with your address. Here is what applies in Ontario, Alberta, and Quebec, as of October 18, 2026.
Ontario
Under section 99 of Ontario's Condominium Act, 1998, the corporation must insure the units and common elements against major perils: fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes, riots or civil commotion, impact by aircraft or vehicles, and vandalism (Condominium Act, 1998). Coverage must be at replacement cost, subject to a reasonable deductible, and it excludes improvements made to a unit. What counts as an improvement is measured against the standard unit, defined by by-law or by the declaration.
On deductibles, section 105 sets a fault-based default. The owner pays the lesser of the repair cost and the deductible only when the owner, a tenant, or a resident damaged the unit through an act or omission. A corporation can pass a by-law that extends the charge-back to other situations. The Condo Authority of Ontario adds that owners are not legally required to carry insurance, but the corporation's governing documents may require it (Condo Authority of Ontario).
Alberta
Alberta's Condominium Property Act requires the corporation to insure the units, other than owner improvements, and the common property at replacement cost, with no deduction for depreciation. The Act also treats the owner's own policy as excess insurance over the corporation's policy (Condominium Property Act).
The Condominium Property Regulation goes further than Ontario's rules in two ways (Condominium Property Regulation):
- Required perils: the corporation's policy must include water damage caused by flood and by sewer backup, although the flood requirement is dropped where flood coverage is not available for the property.
- Deductible charge-back: an owner is liable, without fault, for up to the corporation's deductible when damage starts in the owner's unit, capped at $50,000. Exceptions include construction defects and damage caused by the corporation.
A corporation can also pass a by-law requiring owners to buy insurance for the deductibles they may have to pay.
Quebec
Quebec's co-ownership insurance rules come from the Civil Code of Québec, as amended in 2018, and a regulation adopted under it. Bill 16, adopted in 2019, added other obligations such as the building maintenance log; the insurance rules below are not from Bill 16.
- Mandatory liability insurance: every co-owner must carry civil liability insurance (art. 1064.1). The minimum is $1,000,000 for a building with fewer than 13 units and $2,000,000 for 13 units or more, in force since October 15, 2020 (co-ownership insurance regulation, CCQ, r. 4.1, in French).
- Building insurance: the syndicate insures the whole building for an amount sufficient to rebuild it, excluding owner improvements, and must have that amount appraised at least every five years by a chartered appraiser (art. 1073).
- Deductible: the syndicate can recover its deductible from co-owners only through common expenses, unless a co-owner is liable for the damage (art. 1074.2).
- Self-insurance fund: the syndicate must keep a fund to pay deductibles (art. 1071.1), with minimum yearly contributions in force since April 15, 2022.
The full texts are in the Civil Code of Québec.
How to choose your limits
Start with documents, not with a quote. Ask the corporation or the syndicate for the master policy summary, the standard unit description, and the by-laws on deductibles. Then size each part of your own policy.
- Contents: list your belongings by room and estimate their replacement cost.
- Improvements: compare your unit with the standard unit description and price every upgrade.
- Deductible coverage: match or exceed the master policy's highest deductible, and in Alberta, the $50,000 cap.
- Liability: in Quebec, respect the legal minimum; elsewhere, choose a limit that reflects your assets.
- Loss assessment: ask whether the master policy is insured at full replacement cost.
No public agency publishes an average condo insurance premium at a primary source as of October 18, 2026, so we do not quote one. Your price depends on the building, your limits, your deductible, and your claims history. Compare at least three quotes with identical limits, through our insurance comparison tool or a broker. Our page on getting home insurance quotes explains the process.
Condo insurance and your mortgage
If you finance your condo, budget the premium alongside your mortgage payment and condo fees with our mortgage payment calculator. Do not confuse condo insurance with mortgage default insurance: our mortgage insurance guide explains that product, which protects the lender, not your unit.
Conclusion
Condo insurance only works when you know what the master policy covers. Get the master policy summary, the standard unit description, and the deductible by-law before you buy your own coverage. Insure your belongings and upgrades at replacement cost, match your deductible coverage to the corporation's highest deductible, and review both every year, because master policy deductibles can change at renewal.
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Frequently asked questions about condo insurance
Is condo insurance mandatory?
It depends on the province. In Quebec, every co-owner must carry civil liability insurance, with a minimum of $1,000,000 or $2,000,000 depending on the size of the building. In Ontario, owners are not legally required to insure, but the corporation's governing documents can require it, and Alberta corporations can require deductible insurance by by-law. Your lender will also expect coverage. Our insurance hub explains the main policy types.
What does the condo corporation's insurance cover?
The master policy covers the building and the common elements, and in Ontario and Alberta the units as built, against the perils the law requires. It does not cover your belongings, your upgrades, or your personal liability, according to the Insurance Bureau of Canada. Ask the board for the policy summary. Our guide on what home insurance is explains the main coverage types.
What are improvements and betterments?
Improvements and betterments are upgrades made to your unit beyond the standard finishes, such as hardwood floors, a renovated kitchen, or custom counters. The corporation's policy excludes them in Ontario, Alberta, and Quebec. Your own policy needs a limit high enough to restore them. Compare limits with our insurance comparison tool.
Who pays the deductible when water leaks from my unit?
It depends on the province. In Alberta, an owner is liable without fault for up to the corporation's deductible when damage starts in the unit, capped at $50,000. In Ontario, the default rule applies when an owner, tenant, or resident caused the damage, unless a by-law extends it. In Quebec, the syndicate can recover the deductible only through common expenses, unless the co-owner is liable. Our article on tenant insurance and water damage covers the renter side.
How much condo insurance do I need?
Add up the replacement cost of your belongings, the value of your upgrades, the master policy's highest deductible, and a liability limit that matches your assets or, in Quebec, the legal minimum. Those numbers set your minimum coverage. Then compare quotes with identical limits through our page on home insurance quotes.
Does condo insurance cover flooding?
Your own policy generally needs optional endorsements for sewer backup and overland water, according to the IBC. In Alberta, the corporation's policy must include flood and sewer backup coverage, except flood where it is not available. Read both policies before a storm, and see our guide to home insurance in BC for a West Coast example.
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