Toronto is a bustling city with many condominiums. Owning or renting a condo in such a vibrant place can be exciting, but it’s important to protect your investment. Getting the right condo insurance is the perfect way to do just that.
If you are interested in condo insurance, then it’s likely that you have plenty of questions, including about the cost. Along with answering those questions, we’ll look at the factors that affect the premium you pay and if there’s anything to do to reduce it. Let’s get started.
Understanding Condo Insurance: A Brief Overview
Condo insurance differs from traditional home insurance in a few key ways. Instead of covering both the structure and the contents, condo insurance will focus on protecting the interior of your unit.
Thankfully, the condominium corporation will usually have a master insurance policy. This will protect the building’s structures along with any common areas. Your condo insurance will, therefore, fill the gaps and protect your belongings, personal liability, and any upgrades you make.
Whether it’s water damage, a visitor injuring themselves, or any other type of unforeseen damage, condo insurance Toronto can be your safety net. It will help to give you financial protection against several perils and prevent you from needing to pay hefty repair bills or legal expenses.
The Cost of Condo Insurance in Toronto
It’s important to note that the condo insurance cost in Toronto can change dramatically from one person to the next. The average cost for a monthly premium is around $30 and it’s possible to get it even cheaper than that.
For most people, the monthly cost is between $20 and $60. This equates to a yearly cost of roughly $250 to $700. The higher end of that scale is reserved for larger condos that may have more valuables to protect.
For many people, this is a reasonable sum to pay. It’s generally much cheaper than homeowners’ insurance as you don’t have to worry about protecting the building. The exact price you pay can vary, and the only way you’ll know for sure is by getting insurance quotes.
Factors Influencing Condo Insurance Costs
As we mentioned there, prices can vary, but what exactly goes into a condo insurance quote? Here are all the main factors that insurance companies will consider.
Location – The neighbourhood in which your condo is situated can play a major role in your insurance premiums. Factors such as the crime risk can be taken into account, as well as the surrounding features of the property, such as proximity to emergency services.
Building Features and Age – The age and type of structure can also impact the price. Older buildings generally cost more as they are more likely to have outdated wiring and plumbing. Newer condos built with up-to-date regulations will be seen as less of a risk.
Coverage Limits – The coverage limit is the maximum the insurance company will pay out. You will need to set this depending on the value of the items kept in your property. The higher the coverage limits, the more expensive the insurance will be.
Deductible – The deductible is the amount you pay out of your own pocket before the coverage kicks in. This is used on the vast majority of premiums as it gives more protection to the insurer. Those with low deductibles will likely pay more.
Security – The security of your condominium as well as your own condo can be taken into account. If there are features such as surveillance cameras, gated access, or security guards, that will all help to drive down the price.
Claims History – Another significant factor can be your claims history. If you have a history of making several claims, the insurance company will likely see you as a higher risk. This will result in higher premiums.
Saving Money on Condo Insurance
Condo insurance is a necessary expense, but that doesn’t mean you just have to accept the first quote you get. There are several strategies that you can use to cut down on your insurance costs.
Bundle Policies – Bundling your condo insurance with another type from the same company is a great way to reduce your bills. You can check with your provider to see if that option is available.
Increase Deductibles – The higher your deductible, the less you’ll pay. However, you want to ensure that you’ll be able to pay it should the time come.
Increase Safety Measures – Even if your condominium has robust security, it’s always a good idea to add your own.
Shop Around – Never settle for the first quote you get. Shop around with a few different companies, or let an insurance broker do the hard work for you.
Lower Coverage Limits – If you feel you don’t need a lot of coverage, then lower your limits. However, you still want to ensure everything is protected.
Final Thoughts
Condo insurance is a vital safeguard against a range of different perils. Thankfully without the need to insure against the structure of the building, policies are usually affordable. But as we’ve seen, the cost can change based on a range of factors.
It’s important to understand these factors before both seeking and accepting a quote. It will allow you to be confident you are getting the right deal. If you are looking for condo insurance or need further assistance, call Buckler Insurance today, and we’ll be happy to guide you through the process.
