The short answer
Condo corporation insurance is the package a condominium corporation buys to protect the buildings, common property, the board and the corporation's money. It usually combines a property policy based on an insurance appraisal, general liability, directors and officers cover, fidelity cover and often equipment breakdown. Provincial condominium law and the bylaws shape what must be insured and how deductibles are shared. A licensed commercial broker can take the building to insurers.
- Condominium boards and insurance committees preparing for renewal
- Property managers who assemble the renewal submission
- Self-managed corporations with volunteer directors
- Boards facing a large deductible increase after water losses
- Newly registered corporations taking over from the developer
2 licensed brokers in the network handle this. In Alberta, Canada, a request for condo corporation insurance can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
The building policy
Property cover for the buildings and common property, usually on a replacement cost basis tied to an appraised value. Water, sewer backup, earthquake and equipment can each carry different deductibles, so read the declarations page line by line.
Insurance appraisal and reserve fund study
The appraisal estimates what it would cost to rebuild, which sets the insured value. The reserve fund study plans for future repair and replacement of common components. They answer different questions and both are commonly requested by insurers.
Standard unit and bylaws
A standard unit description or the bylaws define what the corporation insures inside each unit, as opposed to owner improvements. Where that line sits decides how claims are split between the building policy and owners' policies.
Deductibles shared with owners
Bylaws may let the corporation charge a deductible back to the owner whose unit caused or suffered a loss. Provincial law sets limits on this and Alberta's rules have changed in recent years, so have the corporation's lawyer confirm what currently applies.
Directors and officers
Protects board members personally, and often the corporation, when owners or others allege a wrongful decision, such as on assessments, repairs or enforcement of bylaws. Volunteers are a common focus of these claims.
Fidelity and crime
Covers theft or fraud involving the corporation's funds, including reserve funds, by an employee, a director or, where included, the property manager. Ask whose acts are covered and whether the manager carries its own bond.
General liability and equipment
Liability for injuries in common areas, such as a slip on an icy walkway or a fall in the parkade, and breakdown cover for boilers, elevators and building systems where it is added.
02 / Get ready
Bring this, and expect these questions
Gather
- The current insurance certificate and full policy, with every deductible listed
- The latest insurance appraisal and its date
- The most recent reserve fund study and the board's plan responding to it
- The registered plan, the bylaws and any standard unit description
- A loss history for the past several years, with causes, amounts and units involved
- Details of building systems: plumbing material, heating, elevators, fire protection and roof age
- Water mitigation work, such as leak detectors, shut-off valves or a plumbing replacement project
- The property management contract and the manager's own insurance certificate
- A list of directors, how funds are handled and who signs cheques or approves payments
- Any open claims, owner disputes or legal actions involving the corporation
A broker will ask
- When was the last insurance appraisal done, and has construction cost changed since?
- How many water losses has the building had recently, and what caused them?
- What do the bylaws say about charging deductibles back to owners?
- Is there a standard unit description, and where does the corporation's cover stop inside a unit?
- What plumbing material is in the building, and is there a plan to replace any of it?
- Who handles the corporation's money, and are two signatures needed for payments?
- Have owners or residents made complaints or threatened legal action against the board?
- Is the building fully residential, or are there commercial units or short-term rentals?
- Does the property manager carry its own errors and omissions and fidelity cover?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A mid-rise with repeated water losses
A 1990s wood-frame building has had several leaks from failed supply lines and dishwashers in recent years. At renewal, the board was told the water deductible would rise sharply and some insurers declined to quote.
First steps. Build a clear loss summary with each cause and what was done afterwards, and gather any leak detection or valve replacement work. Ask the broker how the market views the building, which mitigation steps insurers weigh most, and how a higher deductible interacts with the bylaws.
A self-managed townhouse corporation
Twenty-two townhouses are run by a volunteer board with no property manager. The treasurer handles the reserve fund alone, and the board has never had directors and officers cover reviewed.
First steps. Gather the bylaws, the bank signing authorities and the latest financial statements. Ask the broker how fidelity cover works when one volunteer controls the funds, what directors and officers cover would include, and what controls insurers ask about.
A board with an outdated appraisal
A high-rise corporation last had its insurance appraisal done years ago, and construction costs have risen since. The board is unsure whether the building is insured for enough to rebuild.
First steps. Order an updated insurance appraisal from a qualified appraiser and share it, with the reserve fund study, with the broker. Ask how insurers use the appraised value, what happens if it is too low, and how the change should be explained to owners.
05 / Words you will hear
The jargon, in plain words
- Insurance appraisal
- A professional estimate of what it would cost to rebuild the corporation's buildings. It sets the value the property policy is written on.
- Reserve fund study
- A long-range plan of when common components will need major repair or replacement and how much the corporation should set aside to pay for them.
- Standard unit
- The baseline description of a unit's finishes that the corporation insures. Anything an owner adds beyond it is usually the owner's to insure.
- Deductible chargeback
- When the corporation bills an owner for part or all of its deductible after a loss involving their unit, as the bylaws and provincial law allow.
- Fidelity cover
- Insurance against theft or fraud involving the corporation's money by people trusted to handle it, such as employees, directors or, where included, the manager.
- Loss run
- A report from an insurer listing the claims made under a policy over a period, with dates, causes and amounts. Boards use it at renewal.
06 / Common mistakes
What trips people up
- Relying on an old insurance appraisal while construction costs have moved.
- Treating the reserve fund study and the insurance appraisal as the same document.
- Raising the deductible without checking what the bylaws and provincial law allow to be charged to owners.
- Sending a renewal submission without a clear loss history and the fixes that followed.
- Letting one volunteer control the corporation's funds with no second signature.
- Telling owners the building policy covers their improvements without reading the unit definition.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles condo corporation insurance takes it from there.
07 / Questions people ask
Straight answers
What does condo corporation insurance cover?
It usually covers the buildings and common property, liability for injuries in common areas, directors and officers for decisions the board makes, fidelity for theft of the corporation's funds, and often equipment breakdown. What it covers inside units depends on the bylaws and any standard unit description. A broker can map each part against the corporation's documents.
What is the difference between an insurance appraisal and a reserve fund study?
An insurance appraisal estimates the cost to rebuild the buildings after a total loss, which sets the insured value on the property policy. A reserve fund study looks ahead at when common components such as roofs, windows and elevators will need repair or replacement and how to fund them. Insurers and owners often ask for both.
Can a condo corporation charge its deductible to an owner?
Often the bylaws allow the corporation to charge some or all of a deductible to the owner responsible for, or whose unit suffered, a loss. Provincial law limits how this works, and Alberta's rules have changed in recent years. The board should have its lawyer confirm what applies now, and owners should check their own loss assessment cover.
Do condo board members need directors and officers insurance?
Board members can be named personally in disputes over assessments, repairs, bylaw enforcement or how money was spent, even as volunteers. Directors and officers cover pays defence costs and, within limits, settlements for those claims. Many corporations carry it as part of their package. Ask the broker what the policy excludes and whether past directors are included.
Why did our condo insurance renewal go up?
Renewals often reflect the building's own loss history, especially water claims, along with a higher appraised value, changes in construction costs and broader conditions among insurers. Wood-frame construction, older plumbing and high-value units can also matter. A broker can show which factors insurers named and which mitigation work might be weighed at the next renewal.
What is a standard unit definition?
It is a description, in the bylaws or a separate document depending on the province, of what a unit included when the corporation was registered or at another fixed point. The corporation insures to that standard, and owners insure upgrades beyond it. Without one, boards and owners often disagree about who pays for flooring, cabinets and fixtures.
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.