How do Strata & Homeowner Insurance Work When You Own a Condo?

How do Strata & Homeowner Insurance Work When You Own a Condo?

Most people agree that it’s smart to be insured in the event your home or belongings become damaged or destroyed. However, did you know insurance coverage for strata properties can differ to that offered for non-strata condos?

How is a Condo Different From a House?

A condo is a property unit owned by separate people. These individual condo owners together form a strata corporation for the management of the building and the common areas. Common areas include but are not limited to:

  • Landscaping, gardens, and pools
  • Parking garage or parking lots
  • Sidewalks and walkways
  • Light fixtures and hallways
  • Amenities provided in the building, such as fitness center or lift

A house is a privately owned property, to include the land, building, landsCape, and any other dwellings on the property (such as a garage or tool shed).

Homeowners Insurance vs. Strata Insurance

Homeowners insurance, also called household insurance, is pretty straightforward. Most people understand that it covers the value of their home, their personal contents, and personal liability for their house

Homeowner’s insurance can cover the following items in your house:

  • Curtains and carpets
  • Furniture and curtains
  • Clothing and jewelry
  • Decor and electronics
  • And more

Strata insurance policies generally cover common areas and shared property, such as gardens, pools, lifts, ceilings, and floors. Unit owners share the expense of maintaining common property by paying monthly maintenance fees. Strata insurance covers the following common areas and items in a condo building:

  • Communal equipment, furniture, and appliances
  • Fixtures and fittings that cover common areas of the building (i.e., air conditioning, water pipes, balconies, and sewage pipes)
  • Garden equipment and garden areas
  • Lifts and wiring
  • Swimming pools
  • Car parks/ports
  • Windows, ceilings, walls, and floors
homeowners insurance vs strata insurance

Where does Condo Insurance Fit Into The Picture?

If you own a condo, the only thing the strata corporation insurance covers is the overall structure and the common areas. Condo insurance protects everything else, including:

  • Personal Property: the contents of your condo (including furniture, electronics, rugs, appliances, etc.)
  • Unit Improvements: the upgrades that you paid for after you purchased your condo, such as a new kitchen or built in wardrobes (strata only covers the original value of the building and not any upgrades you make to it)
  • Loss Assessment: loss to common elements if/when the strata’s policy isn’t enough to cover the damages

However, condo insurance differs from homeowners insurance by not insuring the value of the building, which is covered under the strata insurance policy. When you own a condo, you need to invest in condo insurance and ensure your condo is properly covered with strata insurance.

Do You Have the Right Coverage?

At Petra Insurance, we create customized strata insurance, household insurance, and condo insurance plans to protect your interests. 

If you’re interested in learning more about adding coverage or ensuring you’re adequately protected, contact a member of our team today. Our team of advisors is ready to help you review your existing policy, or to provide you with a quote for new coverage to ensure you’re protected against the unexpected personally and professionally in the years ahead.

Contact a member of our team today. You can also reach us on Facebook, Instagram, Twitter, and LinkedIn.

How do Strata & Homeowner Insurance Work When You Own a Condo?


Managing Partner

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