Condo Insurance in Alberta

A breakdown of condo insurance coverage in Alberta

The reality is that not all Alberta condo insurance plans look the same. Since it is not government mandated, condo owners can pick and choose which coverages are right for them. That said, the following three coverage types are staples of this type of insurance, which means your policy will very likely include them at a minimum:

Dwelling coverage

Dwelling coverage is designed to protect your physical dwelling - in this case, your condo unit - from damage. Unlike personal property coverage, dwelling coverage will cover you if any part of your physical unit is damaged, such as the windows, doors, or walls. Dwelling insurance covers damage as long as the damage is caused by an insured peril, such as:

• Fire
• Lightning
• Smoke
• Theft
• Wind
• Car/aircraft impact
• Explosion
• Falling objects

If you want the greatest amount of property damage protection, consider adding all perils insurance to your Alberta condo insurance policy.

Personal property coverage

Personal property coverage, which is also known as contents coverage, is the type of property damage coverage that protects the personal belongings inside your home. If a loss occurs, there is a chance that the personal items inside your home will be affected. For example, if a fire breaks out, it could damage not only the walls or doors but also your furniture, decor, or artwork.

Similarly, if a thief breaks into your home, they might not only damage the entryway but also steal valuable electronics or jewellery. If you want to be compensated for these lost items and receive a payout to help you replace them, you will need personal property coverage. Please note that personal property coverage will only protect you if the loss occurs due to a covered peril that is laid out in your policy.

In addition, if your home is filled with lots of high-value items, consider adding a separate rider or endorsement to protect those items, as basic personal property coverage may not.

Personal liability coverage

Last but not least is personal liability coverage, which you may also know as third-party liability insurance. This type of coverage is included with practically every Alberta condo insurance policy, as it’s the only way to have financial protection against third-party claims. The most common third-party claims are bodily injury and property damage claims, and they can be filed against you by any guest or visitor to your home. If a claim is brought against you, your insurance company can help pay any associated costs, like legal fees, medical expenses, repair bills, and more.

Other ways to protect your Alberta condo unit

If the coverage mentioned above doesn’t seem like enough, then you may wish to add an extra form of protection to your policy. Below, we outline a few of the most popular condo insurance coverages available in Alberta:

Home-based business-coverage

Do you work from home regularly? Do you run a business out of your condo? If you answered yes to either of these questions, then adding home-based business coverage to your policy would be a wise decision. Keep in mind that basic condo insurance only covers personal damage, not damage that results from business use of the space.

In other words, if your work laptop was damaged, valuable inventory was stolen from your condo, or a customer visited your condo, injured themselves, and sued you, your condo insurance policy likely wouldn’t protect you unless it contained a home business endorsement. Learn more about the importance of home-based business coverage for those who work from home by reaching out to BrokerLink today.

Equipment breakdown coverage

Equipment breakdown coverage can cover some of the most expensive items in your condo: your appliances. When you add this type of coverage to your Alberta condo insurance policy, your insurance company will pay to repair or replace any household equipment that breaks down due to an internal failure. So long as the damage is the result of a mechanical failure and was not intentional or the result of wear and tear, your insurance company can pay for the damage. The types of appliances and household equipment that might be covered include dishwashers, washing machines, dryers, ovens, refrigerators, air conditioners, furnaces, and more.

Sewer backup coverage

Sewer backup coverage is a form of flooding insurance. If your condo is flooded due to sewage backing up and coming out of the drains in your condo, your insurance company will pay for the cost of the water damage.

Overland water coverage

Overland water coverage is another type of flood insurance that might be important if you live near a body of water in Alberta. With this type of coverage, your insurance provider will pay to repair any water damage that occurs in your condo due to a nearby lake or river, overflow, heavy rain, or rapid snow melt.

How will an insurance company calculate my Alberta condo insurance premium?

Insurance companies in Alberta use a variety of factors to calculate condo insurance premiums. Some of these factors relate to you as a policyholder, while others relate to your condo. A comprehensive list of factors that will be considered are as follows:

• How valuable your Alberta condo is
• How safe and desirable your neighbourhood is
• How close your condo is located to emergency services
• The type, age, and condition of the heating system that your Alberta condo uses (older systems like oil tanks or wood stoves may lead to higher premiums)
• The type, age, and condition of the electrical system in your Alberta condo
• The type, age, and condition of the plumbing system in your Alberta condo
• Whether your Alberta condo is equipped with a home security system, and if so, what type of system it has
• The coverages, limits, and deductibles you choose to add to your policy (you can find out more about premiums and deductibles here)
• Your insurance claims history

If you want to know how much it will cost you to buy an Alberta condo insurance policy, the best thing you can do is contact a local insurance broker. BrokerLink offers free condo insurance quotes to all customers. Simply answer a few questions, and we will give you a free quote in minutes.

Is condo insurance mandatory in Alberta?

Home insurance in Alberta is not a legal requirement. However, that doesn’t mean that you won’t need to purchase home insurance. Even though the Government of Alberta doesn’t mandate it, your mortgage lender might. If you took out a mortgage to buy your Alberta condo, then be sure to read the terms and conditions of your mortgage contract carefully. Most of the time, mortgage lenders require borrowers to have a valid home insurance policy until their mortgage is paid off. This means that you will be contractually obligated to purchase condo insurance coverage.

That said, if you don’t have a mortgage - whether you bought your condo with cash or you recently paid off your mortgage, then you won’t have any obligation to have a valid condo insurance policy. Given the financial protection that condo insurance offers, most condo owners in Alberta still choose to buy condo coverage for peace of mind. When you consider all that condo insurance can cover, from fire damage to liability claims and much more, it’s worth the price.

If you need help finding the right insurance policy for your condo, contact an insurance broker in Alberta through BrokerLink. We have an entire team of licensed and experienced insurance advisors ready to help you find the ideal coverage for your needs.

Condo corporation insurance is not the same as condo insurance

A common misconception among condo owners is that condo corporation insurance will cover them. This could not be farther from the truth. While your condo corporation or condo association likely has its own insurance policy, this policy is designed to protect them from risk - not residents or tenants. If the exterior of the building or any common areas, like the elevators, hallways, entryways, or fitness room, was damaged, the condo corporation insurance would likely cover it. However, if your specific condo unit was damaged or your personal belongings inside of it were lost, condo corporation insurance would not cover you.

Similarly, condo corporation insurance covers liability claims if a tenant or resident brings a third-party claim against them, but it will not cover liability claims brought against specific residents. For instance, if a guest visited your condo and injured themselves while inside your unit, condo corporation insurance would not protect you. Rather, you would need to have your own condo insurance policy that featured third-party liability coverage.

If you are still confused about how condo corporation insurance and condo insurance differ, don’t hesitate to reach out to BrokerLink. One of our insurance brokers would be happy to clarify exactly how these types of insurance are different. The main thing to remember is that condo corporation insurance is designed to cover the condo association and the common areas of the condominium complex. In contrast, condo insurance is designed to cover the condo owner against damage to their specific unit.

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What risks does Alberta condo insurance cover?

The good news with Alberta condo insurance is that it can be incredibly comprehensive. Depending on the types of coverage you choose to add to your policy, you can be protected against theft, water damage, fire, liability claims, and more. Below, we explain a few perks that come with Alberta condo insurance plans:

Your Alberta condo insurance policy can replace your personal property

Perhaps the biggest perk of an Alberta condo insurance policy is that it can pay to replace your personal property if it is lost or damaged due to a variety of risks. For instance, if a fire breaks out in your condo or a thief gains entry and steals from you, you can file an insurance claim with your provider and receive a payout to cover the necessary replacements.

So long as the loss or damage to your personal property was caused by an insured peril, which will be clearly outlined in your policy, you will be covered. Some condo insurance policies even cover your personal property when it is temporarily removed from your home or stored in a storage unit.

Your Alberta condo insurance policy can pay for you to live elsewhere if your condo unit is damaged temporarily

A second benefit of Alberta condo insurance is that it can pay for you to relocate if your condo unit is damaged temporarily. For example, if your condo unit floods, you may not be able to live in it until it is repaired. During this time, thanks to loss of use coverage, your insurance company would reimburse you for a wide range of living costs incurred. These may include the cost of getting a hotel room or renting an Airbnb, meals and food, clothing, toiletries, and any other necessary materials during this time. Loss of use coverage can even pay for condo or maintenance fees if you owe any during the time that you are living outside of your unit.

Your Alberta condo insurance policy can pay for updates and renovations

By adding improvements and betterments coverage to your Alberta condo insurance policy, your insurance company might compensate you for any changes or updates you make to your condo unit.

Your Alberta condo insurance policy can pay for third-party liability claims

Last but not least, nearly all Alberta condo insurance plans feature third-party liability insurance. This coverage will protect you if a third party, such as a guest or visitor to your home, files a third-party claim alleging property damage or bodily harm against you. Since lawsuits can be incredibly expensive, having liability insurance is important.

Most condo owners opt for a liability coverage limit of $1,000,000 or $2,000,000 for the greatest amount of protection. This type of coverage can pay for everything from legal fees, including defence and settlement fees, to property damage repair bills and medical expenses in the event of injury.

Find cheap condo insurance in Alberta with these tips

Condo insurance shouldn’t break the bank. Here at BrokerLink, we make sure it doesn’t by offering our customers all sorts of tips and advice to help them find cheap policies. From installing an alarm system in your condo to bundling policies, keep reading to find out how you can find cheap condo insurance in Alberta:

Update your condo insurance coverage yearly

Don’t get complacent. Every time your Alberta condo insurance policy is up for renewal, take the time to review your coverage and update it as necessary. The truth is that the coverage you purchased when you first bought your policy may not make sense for you anymore. For example, it might be time to add or remove coverage types, raise or lower your deductibles, or increase or decrease your coverage limits. Depending on what changes you make, you could end up saving money on your insurance plan. We also recommend shopping around for condo insurance each year to make sure that your provider is still offering the best possible price for your coverage. If you need help reviewing your policy or shopping around and comparing your options, reach out to BrokerLink today.

Install a monitored alarm system in your Alberta condo

Installing a monitored alarm system can instantly qualify you for a property insurance discount in Alberta. Since burglar alarm systems and other types of home security systems help deter and prevent theft, your insurance company may lower your premium if you can provide proof of a functional security system in your condo.

Bundle your Alberta condo and car insurance policies

Save big on both your car insurance and your condo insurance policies through a bundle. By bundling your home and auto policies, an insurance company may offer a discount on both plans. Plus, you’ll only have one policy renewal date to keep track of.

Select a high condo insurance deductible

The higher your deductible, the lower your rates - this is a rule of thumb in the insurance industry. If you can afford to choose a higher deductible over a lower one, doing so can save you money on your policy.

Avoid a house fire at all costs

Fire safety is important for a number of reasons. First, you want to ensure your own well-being and the well-being of any other residents of your condo. On top of that, a fire breaking out in your home can result in an insurance claim, which will end up on your insurance claims history. To avoid an increased premium, take all necessary precautions to avoid a fire in your condo, like installing a fire extinguisher, regularly testing all smoke detectors, understanding fire safety tips, and never leaving open flames unattended.

We’re in your community

BrokerLink is proud to be a member of the Alberta community. We aim to get to know our customers and give back to communities across the province. Learn more about our core values by getting in touch today.

Reach out to BrokerLink to learn more about condo insurance Alberta

At Alberta BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible.

You can reach us by phone, email, or in person at any of our Alberta locations. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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Alberta condo insurance FAQs

Where can I purchase Alberta condo insurance?

Alberta condo insurance can be purchased from both insurance companies and insurance brokers.

What does my Alberta condo insurance policy not cover?

Most Alberta condo insurance policies will not cover damage due to wear and tear or damage due to neglect, such as if you fail to maintain your condo and it falls into a state of disrepair. In addition, unless you add extra coverage to your policy, you will not be covered for flood damage, damage from renovations, damage that occurs while your condo is vacant for 30 days or more, and damage while your home is rented on a home-sharing platform, such as Airbnb or VRBO.

If you have any questions, contact one of our local branches.