Buying a house and buying a condo do not create the same insurance obligations. The owner of a house insures his building, his property and his civil liability himself, while the co-owner shares part of this responsibility with the co-ownership association. Understanding this nuance helps avoid gray areas when filing a claim. This article compares homeowners insurance and co-owners insurance, explains what each policy covers and explains how to choose the right protection for your situation.
Understanding home insurance before choosing
Home insurance is not a single product. It brings together several formulas based on your occupancy status, whether you are the owner of a house, co-owner of a condo or tenant. Each plan allocates liability differently between you and other parties involved.
The common point remains the same. A home insurance policy aims to protect your home, your property and your civil liability. What varies is the extent of what you have to insure yourself.
Before choosing a plan, it is worth comparing the protections offered according to your occupancy status. Online insurers like Sonnet make it possible to quickly obtain a quote forhome insurance and view the guarantees associated with each type of property. You therefore leave with a clear idea of what your policy covers before you even commit.
Why does property type change your coverage?
The type of ownership determines who owns what. In a home, you are solely responsible for the building and grounds, so your policy should cover everything. In a condo, part of the building belongs collectively to the co-owners and is under the control of the union.
This distinction explains why an owner policy is generally broader than a co-owner policy. The co-owner only insures the portion that is due to him, while the owner of a house assumes the entirety.
What is landlord insurance?
Homeowner’s insurance, often called home insurance, protects people who own and occupy a home. It covers both the building, its contents and the civil liability of the occupant.
As the owner owns the entire building, his policy must reflect the reconstruction value of the building, and not its market value. It is this amount which serves as the basis for calculating the guarantees.
Guarantees included in a homeowner’s policy
A homeowner’s policy usually combines 3 main components. The first targets the building itself, including the structure and the facilities attached to it. The second concerns movable property, that is, what the house contains. The third concerns civil liability, which occurs if you unintentionally cause damage to others.
The precise guarantees, their limits and their exclusions vary from one policy and one plan to another. It is better to validate the details of your coverage with your insurer rather than assuming what is included.
Who needs homeowners insurance?
Anyone who owns and lives in a single-family home should take out homeowner’s insurance. Although it is not required by law in Quebec, most mortgage lenders require it until the mortgage is repaid.
This type of policy is also suitable for semi-detached or townhouses where the owner owns the entire building. As soon as you are solely responsible for the structure, owner insurance applies.
What is co-owners insurance?
Co-owner insurance, also called condo insurance, is aimed at people who own a unit in a co-ownership building. It supplements the insurance held by the union, without replacing it.
The co-owner does not have to insure the entire building. Rather, it insures its private portion and the elements which do not fall under the union’s policy.
The role of co-ownership union insurance
The co-ownership association takes out insurance for the common areas and for the unit in its original state, as delivered by the developer. This policy protects the structure of the building and shared spaces such as corridors, the roof or indoor parking.
Since the reform of co-ownership law in Quebec, the co-owner can be held responsible for the deductible of the union’s policy in certain situations. Knowing the limits of this group insurance helps you target what remains to be covered yourself.
Guarantees to take out as a co-owner
The co-owners policy fills the gap left by the union insurance. It generally covers improvements made to the unit, personal property, personal liability and additional living expenses if the home becomes uninhabitable after a disaster.
It can also provide protection for the syndicate’s franchise, which the co-owner may have to assume. Here again, the exact extent depends on the policy and should be validated with your insurer.
What are the differences between homeowner and co-owner insurance?
The basic difference lies in what you have to insure yourself. The owner covers his entire building, while the co-owner only covers his private portion and relies on the union for the rest.
This distribution influences the structure of each policy, the calculation of the premium and the way in which liability applies in the event of a loss.
Building coverage according to property type
In a homeowner’s policy, the building guarantee covers the entire house, from the foundation to the roof. The insured amount corresponds to the total reconstruction cost.
In a co-owner policy, the building guarantee is limited to improvements and private fittings, since the main structure already falls under the control of the union. The amount to be insured is therefore generally lower.
How does civil liability apply in each case?
Civil liability protects in both cases against damage that you could cause to others. For the owner, it extends to the entire land and building.
For the co-owner, it covers damage that originates in his unit, for example water damage that affects the neighboring accommodation. Coordination with the union police then becomes essential to avoid disputes.
How to choose between owner and co-owner insurance?
The choice does not depend on your preferences, but on your type of property. If you own a house, homeowner’s insurance is essential. If you own a unit in co-ownership, co-owner insurance is the appropriate option.
Before subscribing, check what the union policy covers if you are a co-owner, then adjust your protection accordingly. Then compare coverages, limits and deductibles to find the policy that truly reflects your situation.
What to remember about homeowner and co-owner insurance
Landlord insurance and co-owner insurance respond to two distinct realities. The first covers an entire house, while the second supplements the union policy for a condominium unit.
The good reflex is to match your policy to your occupation status and to validate areas of overlap with group insurance. This gives you consistent protection without paying twice or leaving any gaps.
Frequently asked questions about homeowner and co-owner insurance
Does a co-owner have to take out insurance if the union already has one?
Yes. Union insurance protects the structure and common areas, but not your personal property or your civil liability. A co-owners policy remains necessary to fill this gap and cover your unit.
Is home insurance compulsory in Quebec?
No law requires an owner to insure his residence. In practice, mortgage lenders almost always require it, and the regulations of many co-ownerships require the co-owner to hold a personal policy.
Can you bundle your home insurance and your car insurance?
Yes. Grouping your home and auto policies with the same insurer simplifies management and often gives access to a grouping discount. This option is offered to both owners and co-owners.