Modern house in Berlin Insurance policies are designed to cover all kinds of different scenarios – there’s insurance for renters, homeowners, and condo owners. Condo insurance is one of the most unique of the three.

There are several different factors that determine the cost of condo insurance – many of them are the same factors that affect home insurance premiums. We’re going to look into these factors, but before we do, we thought it would be helpful to delve into a few of the differences between condo insurance and homeowners’ insurance.

 

The differences between condo insurance and homeowners’ insurance

One of the core differences between homeowners’ insurance and condo insurance is what needs to be covered. Homeowners are responsible for their building – if it’s damaged, no one will step in to repair it. Condo owners, on the other hand, defer the responsibility for unit maintenance to the condo corporation. As such, homeowners need coverage for damage to their home – condo owners need less coverage for damage to their unit.

Note, however, that we said less coverage – not no coverage. When damage occurs to a condo, the condo corporation may levy what’s known as a loss assessment on condo owners – essentially, the condo owners will need to chip in to help cover costs incurred by the condo corporation. Condo insurance covers for loss assessment. It also covers unit improvements (which are not the responsibility of the condo corporation).

Most other coverages offered by homeowners insurance, including liability and personal belongings coverage, should also be covered by your condo insurance.

 

Factors that can affect condo insurance premiums

There are a number of factors that can change your condo insurance premium. We’re going to look at some (but not all) of them:

Your location

Some areas are more prone to crime than others. While vandalism and break-ins may be less common in condos, they still happen. Your insurer will look at claims among condos in your area (usually based on postal code) and adjust your premiums accordingly. 

 

Your fire protection

Fire protection for condos includes how close the building is to a fire hydrant or fire station, as well as the fire protection systems (like sprinklers and alarms) that the condo building has in place. Less protection will mean higher premiums – fire is one of the biggest sources of loss for insurers.

 

The condo’s features

How old is the condo? What building materials was it made out of? How many floors are there? What heating system does it use? What electrical system does it use? All of these factors, and many more, can affect your premiums. The more modern your condo, the lower your premiums are likely to be – modern buildings tend to use more fireproof building materials and newer wiring and appliances.

 

Your claiming history

Claiming history is an important factor in determining your premiums. When clients claim more often, insurers deduce that they’re at higher risk and will increase their premiums accordingly. 

 

The type of coverage you purchase

Want more coverage? You’ll have to pay a higher premium. That’s pretty straightforward, but it’s important to understand that more coverage can mean a lot of different things in the insurance world.

More coverage could mean a higher coverage limit – say, if you have a lot of personal belongings stored in your condo and your condo locker. It could also mean different types of coverage – you might, for example, have collectibles or jewellery that you require to have covered, for which you would need to adjust coverage limits. Some personal belongings are covered differently than others. 

Finally, the insurer from whom you purchase coverage will also affect your premium. Different insurers set different rates – and that’s where an insurance broker can help. Brokerages like Reider help you compare the policies of different insurance companies to help find the best coverage at the best rate for your needs.

 

If you own a condo, you should get condo insurance

While you may not need to cover the costs of the condo building, you could still be on the hook for improvements you’ve made to your condo, loss assessments, and, of course, the cost of all of your personal belongings. And that’s not even mentioning the value of things like liability insurance.

We highly encourage condo owners to consider purchasing condo insurance. Interested? Our brokers can help you find the perfect condo insurance in Winnipeg for your needs. Get in touch with us!

Insurance policies are designed to cover all kinds of different scenarios – there’s insurance for renters, homeowners, and condo owners. Condo insurance is one of the most unique of the three.

There are several different factors that determine the cost of condo insurance – many of them are the same factors that affect home insurance premiums. We’re going to look into these factors, but before we do, we thought it would be helpful to delve into a few of the differences between condo insurance and homeowners’ insurance.

 

The differences between condo insurance and homeowners’ insurance

One of the core differences between homeowners’ insurance and condo insurance is what needs to be covered. Homeowners are responsible for their building – if it’s damaged, no one will step in to repair it. Condo owners, on the other hand, defer the responsibility for unit maintenance to the condo corporation. As such, homeowners need coverage for damage to their home – condo owners need less coverage for damage to their unit.

Note, however, that we said less coverage – not no coverage. When damage occurs to a condo, the condo corporation may levy what’s known as a loss assessment on condo owners – essentially, the condo owners will need to chip in to help cover costs incurred by the condo corporation. Condo insurance covers for loss assessment. It also covers unit improvements (which are not the responsibility of the condo corporation).

Most other coverages offered by homeowners insurance, including liability and personal belongings coverage, should also be covered by your condo insurance.

 

Factors that can affect condo insurance premiums

There are a number of factors that can change your condo insurance premium. We’re going to look at some (but not all) of them:

Your location

Some areas are more prone to crime than others. While vandalism and break-ins may be less common in condos, they still happen. Your insurer will look at claims among condos in your area (usually based on postal code) and adjust your premiums accordingly. 

 

Your fire protection

Fire protection for condos includes how close the building is to a fire hydrant or fire station, as well as the fire protection systems (like sprinklers and alarms) that the condo building has in place. Less protection will mean higher premiums – fire is one of the biggest sources of loss for insurers.

 

The condo’s features

How old is the condo? What building materials was it made out of? How many floors are there? What heating system does it use? What electrical system does it use? All of these factors, and many more, can affect your premiums. The more modern your condo, the lower your premiums are likely to be – modern buildings tend to use more fireproof building materials and newer wiring and appliances.

 

Your claiming history

Claiming history is an important factor in determining your premiums. When clients claim more often, insurers deduce that they’re at higher risk and will increase their premiums accordingly. 

 

The type of coverage you purchase

Want more coverage? You’ll have to pay a higher premium. That’s pretty straightforward, but it’s important to understand that more coverage can mean a lot of different things in the insurance world.

More coverage could mean a higher coverage limit – say, if you have a lot of personal belongings stored in your condo and your condo locker. It could also mean different types of coverage – you might, for example, have collectibles or jewellery that you require to have covered, for which you would need to adjust coverage limits. Some personal belongings are covered differently than others. 

Finally, the insurer from whom you purchase coverage will also affect your premium. Different insurers set different rates – and that’s where an insurance broker can help. Brokerages like Reider help you compare the policies of different insurance companies to help find the best coverage at the best rate for your needs.

 

If you own a condo, you should get condo insurance

While you may not need to cover the costs of the condo building, you could still be on the hook for improvements you’ve made to your condo, loss assessments, and, of course, the cost of all of your personal belongings. And that’s not even mentioning the value of things like liability insurance.

We highly encourage condo owners to consider purchasing condo insurance. Interested? Our brokers can help you find the perfect condo insurance in Winnipeg for your needs. Get in touch with us!