Condo Insurance vs Home Insurance Canada — Key Differences
Condo insurance vs home insurance in Canada — coverage, price, liability, loss assessment and why an HO-6 policy costs about a third of an HO-3.
Short answer: home insurance covers the whole building — condo insurance covers everything from your drywall inward, plus your share of the condo corporation's exposure. That's why condo policies (HO-6) cost roughly half of a homeowners policy (HO-3) for the same person in the same city.
Here's the honest side-by-side, and why buying the wrong one — or underbuying the condo version — is the most expensive rookie mistake in Canadian real estate.
What home insurance (HO-3) covers
- The full dwelling at rebuild cost
- Detached structures (garage, shed, fence)
- All your contents at replacement cost
- $1–2M personal liability
- Additional living expenses if displaced
- Optional: overland flood, sewer backup, earthquake
What condo insurance (HO-6) covers
- Unit improvements & betterments (upgrades above builder standard)
- Contents at replacement cost
- $1–2M personal liability
- Additional living expenses
- Loss assessment — your share of a special assessment after a covered loss
- Deductible assessment — the corp's master-policy deductible when the loss originated in your unit
The condo corporation's master policy handles the building shell, roof, common elements, elevators, and corp liability — that's why you're not insuring those.
Price difference — real 2026 numbers
Same person, same city (Oakville), same $2M liability, replacement cost contents:
- Detached home, 2,400 sqft, 15 yrs old: ~$1,850/yr ($154/mo)
- Condo unit, 900 sqft, 10 yrs old: ~$480/yr ($40/mo)
Condo runs about 25–30% of the equivalent home policy. The gap comes entirely from not insuring the structure — which the condo corporation already does through the master policy you fund via your monthly maintenance fees.
The one coverage condo owners forget (and homeowners don't need)
Loss assessment. If the corp's master policy has a $50,000 water-damage deductible and a burst riser floods 12 units, the corp will levy a special assessment. Your share might be $2,000. Loss assessment pays it. Skip this coverage and you pay out-of-pocket — every time.
Where to get either policy in under 5 minutes
My default for both is Square One — same insurer handles home, condo and tenant across Canada, quotes online in about 5 minutes, and issues a bindable PDF the same day. That's the certificate your lender and lawyer need before your mortgage funds.
Disclosure: affiliate link — small referral fee at no cost to you.
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Frequently asked questions
What's the difference between condo insurance and home insurance in Canada?
Home insurance (HO-3) covers the whole dwelling and detached structures. Condo insurance (HO-6) only covers your unit from the drywall inward — improvements, contents, personal liability, additional living expenses, plus loss assessment for your share of condo-corp exposure. The building shell is insured by the condo corporation's master policy.
Is condo insurance cheaper than home insurance?
Yes, roughly 25–30% of the cost of an equivalent detached home policy in the same city. In 2026 Ontario, a typical condo runs $28–$55/month vs $130–$180/month for a comparable detached home.
Can I use the same insurer for home, condo and tenant insurance?
Yes. Square One (https://www.squareone.ca/canph) writes home, condo and tenant policies across Canada — bundling with a second policy (e.g. a rental you also own) usually saves another 5–10%.