What is condo insurance (unit owner) vs master policy?
A condo master policy covers the building structure and common areas, while individual unit owner insurance covers the unit's contents and interior finishes; gaps between them are often filled by loss assessment or deductible top-up coverage.
The condo master policy, purchased by the condo corporation, insures the building structure, roof, common areas, and shared building systems. This policy is funded through the owners' condo fees. The unit owner policy, by contrast, protects the individual suite: its contents, personal liability within the unit, and interior fixtures and finishes that fall under the owner's responsibility.
A coverage gap often exists between what the master policy covers and what the unit owner's personal belongings and renovations need. The condo declaration and bylaws spell out exactly what the corporation insures versus what each owner must insure themselves. Typical gaps include:
- Loss assessment coverage, which protects the unit owner if the condo corporation faces an uninsured loss or a claim that exceeds the master policy limit, triggering a special levy on owners.
- Deductible top-up insurance, which reimburses the owner's share of the master policy deductible if a claim is made (for example, if the corporation's deductible is $25,000 and the owner's share is $2,500).
- Coverage for the owner's upgrades, renovations, or custom finishes not included in the standard master policy.
Understanding this split is important in Toronto's condo market, where many owners overlook the limits of the master policy or fail to obtain adequate personal coverage. Unit owners should review their condo documents, confirm what the master policy actually covers, and purchase appropriate individual insurance through a home insurance provider to fill gaps.