How much condo insurance do I need?


When you think about buying insurance for your home, the amount of coverage will depend on your type of property. In case you are living in a condo, there are two kinds of policies you will need. The master policy, which will cover all common areas and external structure and personal insurance. As a condo owner, you will combine both policies. Then, you might be wondering: How much insurance do I need? In this article, you will find the answer.

Whenever you ask an agent how much insurance you need for your condo, they will tell you that it depends. This is because both policies have to work together to give you complete coverage. However, the main difference is that the master policy is mandatory for every resident, while personal insurance is optional. In this regard, there are different types of mandatory policies available depending on the condominium you choose. That’s why first, we will explain the coverage of commercial condo insurance. After, we will break down how you can complement your protection with personal condo insurance.

Condo master policy

If you decide to live in a condo, you will have to purchase a homeowner’s association policy. All types of condo master policies will cover all the common areas such as the gym, swimming pool and games room. As part of the association, you will have to contribute every month to this insurance. Here are the condo master policies that you could find in the market.

  • All-in

These policies cover the exterior structure, fixture repairs and liability. Also, it will protect the internal structure, including any renovations you made to the unit. But, all your personal property is not part of the policy.

  • Bare walls

This one covers only the external structure and common areas. This means you will need to ensure all the contents of your home, appliances, flooring and fixtures, among others.

  • Single entity

With the single entity policy, you will have more coverage than with the bare walls, but less compared to all-in. Single entity protects all the exterior structures of the building, common areas and internal fixtures. However, for any repairs or upgrades, you will have to protect through a different policy.

Remember that the homeowner’s association would decide which type of master policy you buy. The purchase of this insurance will even be a condition to be a resident of the building. It is important to carefully read all the conditions of the master policy and find out everything that is excluded. Once you know which one is your homeowner’s association insurance, it’s time to take a look at the condo insurance.

How much condo insurance do I need?

Some people think that the master policy and the condo insurance are the same things. But, they are wrong. The master policy is the coverage that the homeowner’s association mandates. Condo insurance is a personal coverage that most residents purchase to protect their personal property, plus everything excluded in the master policy. If you want to find the top condo or home insurance in the market, visit Surex.

Now, you might be wondering how much insurance do you need for your condo? Well, that depends on the master policy. For instance, if you have all-in coverage, you will need to purchase condo insurance to cover renovations. However, there are other factors you need to consider, such as the age of the structure, location and size. You can talk about all this with your insurance agent, and they will help you determine which coverage you need.

But, before you call your insurance company, there are some values you need to know.

  • 1. Personal items

Apart from complementing what’s missing from the master policy, condo insurance also protects your personal items. This insurance will kick in in case your items are damaged, lost or stolen. To have an average value for the coverage of your items, you need to do an inventory.

When you start asking for condo insurance quotes, one of the first questions they will ask you is for an estimated value of your personal property. It is easy to underestimate the cost of elements you have in your house. That’s why an inventory of your clothes, furniture, appliances and electronics will ensure you come up with an accurate amount.

Today many apps can help you with the inventory, plus you can edit it to keep it up to date. If you have any high-value items such as jewelry or musical instruments. You’ll have to add these elements to the policy through floaters.

  • 2. Liability coverage

Make sure that your condo insurance policy includes liability coverage. This part of the policy will protect you in case someone gets injured inside your property. The insurance company will take care of all the medical bills, up to a determined amount, plus any legal fees.

Before deciding how much liability coverage you will need, asses all the possible hazards in your home.

  • 3. Living expenses

In case the is a fire, leaving your unit completely destroyed and you can’t live there while it is being repaired. Where would you go? Even though this is an extreme scenario, you must prepare for unexpected situations. To determine the living expenses of your policy, you need to think about your daily life.

Consider you might be living in a hotel for a couple of months. How much money will you expend? What is the cost of food for you and your family? Once you have an amount, you can include it in your policy.

After taking a look at how much condo insurance you might need, we will talk about how much should condo insurance cost.

How much should condo insurance cost?

On average, condo insurance costs $488, but the final amount depends on several factors. The insurance company will calculate your premium considering your master policy, the state of your unit and your location. However, the coverage for personal items, liability and living expenses will increase the price of your policy. If you feel lost at any point, contact your provider or insurance agent.

May Stats are Here!

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,811 sales of residential properties located within the RAHB market area through the Multiple Listing Service® (MLS®) System in May 2021. While sales were down five per cent since last month, they were up 90 per cent since May 2020. New listings were down 14 per cent since last month and up 73 per cent as of last May. The average price for residential properties was $843,468 which was down one per cent from last month and up 29 per cent from May 2020. The inventory available at the end of the month was 0.6 per cent lower than last month.

“In May 2021, the RAHB market area saw a very slight decrease in sales and number of properties being listed as compared to April 2021,” says RAHB President Donna Bacher.“We have to acknowledge that the impact of the COVID-19 pandemic distorts housing statistics when comparing year to year, so rather than looking at 2020 to 2021, our best insight comes from a month over month analysis – especially in a spring market.”

The number of sales of detached properties in the RAHB market area decreased by four per cent in May 2021 compared to April 2021. The number of new listings was down 12 per cent, and the average sale price decreased by one per cent to $940,348 from last month. The number of active listings for detached homes has increased by two per cent compared to April 2021. The sales to new listing ratio at the end of May was 77 per cent for detached properties.

“For the second month in a row, detached homes in the RAHB market area saw a slight decrease in average price even though statistically we are still well within a strong seller’s market,” says Bacher.

The number of sales of townhomes in the RAHB market area decreased by 10 per cent in May 2021 compared to April 2021. The number of new listings of townhomes was down 20 per cent, and the average sale price increased by 0.2 per cent to $714,695 from last month. The number of active listings for townhomes has decreased by nine per cent compared to April 2021. The sales to new listing ratio at the end of May was 85 per cent for townhomes.

“Townhomes, when comparing May 2021 to April 2021, saw an overall decrease in the number of sales, new listings, and active listings; however, the average price of a townhome remained practically the same compared to last month at just over $700,000. With a significant drop in new listings compared to last month it is no surprise that townhomes finished May off in a very strong seller’s market.”

The number of sales of apartment-style properties in the RAHB market area increased by four per cent in May 2021 compared to April 2021. Compared to last month, May 2021 saw the number of new apartment-style listings decrease by 12 per cent, and the average sale price decreased by 0.2 per cent to $532,030. The sales to new listing ratio at the end of May was 98 per cent for apartment-style properties.

“The average price of an apartment-style property saw a nominal decrease for May 2021. But once again, apartment-style properties finished the month in a very solid seller’s market.”

Specific neighbourhoods within the overall RAHB market area saw results that often differ from the average of the entire RAHB market area. Neighbourhoods vary and, determining the right price and conditions when buying or selling a property can be challenging. Local RAHB REALTORS® have the experience, knowledge and tools to help buyers and sellers make those big decisions.

Bacher adds, “For anyone who wants to buy or sell a home in the RAHB market area, our RAHB REALTORS® have access to the best technology, along with a commitment to follow strict safety protocols, ensuring safe and successful showings and sales. Whether you’re a buyer or seller, working with one of RAHB’s more than 3,500 members will help ensure you are not only getting the best service and data but also that your real estate transactions will be both successful and safe.”

**Average sale price can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value. Talk to your local REALTOR®.