Do I need condo insurance if I’m renting?

By Realestate Condos Team on August 9th, 2018

In this article we’re going to look at all the different types of insurance required in a condo building. Condo living comes with many conveniences but deciphering between all of the different insurance requirements can get a bit confusing.

Access to condo amenities isn’t free, of course, and if you’re renting a condo unit from an owner, you may be required to pay the condo fee if it isn’t included in your rent.

Let’s break down the three major types of condo insurances to see which one is most applicable to your housing situation.

Condo fees

Let’s start here, because the condo fee is essentially unavoidable.

Living in a condo building with amazing amenities comes at a premium. Do you really think the condo corporation is going to pay for the ongoing maintenance of the lobby, the gym, the pool, the barbeques, the party rooms, the elevators, or the concierge’s salary?

They won’t, because they have already paid to install these things, and they don’t even use those amenities anyway!

Depending on how luxurious your building is, and what type of maintenance or repair needs to be done, your monthly condo fee will reflect these costs. Newer buildings tend to be cheaper in this category because all of the facilities are new. Once things start seeing wear and tear and something needs fixing, you may see a spike in your condo fee for that month as every owner in the building has to share the cost.

As an example, your condo fee might increase temporarily if the pump on the shared pool needs to be repaired or replaced.

What is condo insurance?

So, since the condo fees above seem to cover everything outside of your owned unit, what covers all of the things inside of it? Many people are surprised to find out that the condo fee coverage stops at their front door.

In order to protect your property and the integrity of your unit, condo insurance (similar to homeowners insurance) is imperative. It’s only you that will have to foot the bill for any repairs, liability claims, occurrences of theft or fire within your home. These costs can be quite burdensome and will more than likely happen unexpectedly. To cover the costs for events that may or may not be your fault, taking out this affordable policy is your best bet.

What is renters insurance?

Now that we’ve covered the two types of insurances for owners, we come to the topic of renters insurance.

If you’re renting from an owner, then that person may now be considered a landlord, and he or she may have another insurance type known as “landlords insurance,” which covers major appliances and liability issues.

To protect your own possessions, which your landlord has no obligation to protect, there’s something called renters insurance.

If you consider the cost to replace all your possessions during an unexpected event like a break in, fire, or appliance malfunction, the price of all your electronics, clothing and jewelry items is likely way too much to afford all at once.

If anything happens to these items, even at no fault of your own, renters insurance will step in to reimburse you for your losses. Renters insurance is also generally considered the cheapest form of property insurance.


We know it might seem confusing, but at least a couple of the insurance types mentioned above will apply to a condo owner or renter no matter the type of building.

The variables that affect the cost of the condo fee is how expensive your building amenities are to maintain, the (interior) condo insurance will be impacted by the value of your contents as will the renters insurance, though the latter will only take into account the renter's personal property and liability coverage if they so choose.