Insurance for a condominium is slightly different than for a standalone house. When you buy a condominium, it’s considered strata unit ownership, which means that you own your own unit and you own a share in the common property of the building. Condo insurance, therefore, takes the form of two separate policies. One for a unit owner and one for the common strata corporation.
Insurance for the condo corporation provides general cover for damage to the building, the common property around it, and the common areas inside the building (the lobby, elevator, swimming pool,etc). You pay for this insurance within your monthly strata fee due to your property manager.
Individual unit owners should purchase condo insurance to cover their personal belongings (furniture, appliances, clothing etc.) that is not insured by the common strata insurance policy. Personal condo insurance will also cover you for additional living expenses and third-party liability.
Sometimes, the common condo corporation insurance has a very high deductible, up to $100,000. This means that if you cause a loss, you would be responsible to pay the $100,000 deductible. Within a personal insurance policy, coverage for this strata deductible is available to cover this deductible on your behalf.