What are five ways to save on condo insurance?

Updated by Arshi Hossain on November 6, 2026 | Originally written by Martin Dasko on September 5, 2016   

Condo insurance in Canada is getting more expensive, but five moves can reduce your premium without compromising coverage: bundle home and auto, raise your deductible, add safety and security features, stay claims-free, and shop around at renewal.  

While homeownership involves a series of expenses, another monthly insurance premium burden on your wallet is the last thing you want to add on. But condo insurance is a necessary expense that can protect you from a potentially much bigger financial strain. If a leak starts in your unit, or a visitor gets injured in your home, you could be on the hook for tens of thousands of dollars without insurance protection. Most mortgage lenders require you to have insurance, and many condo corporations across Canada make unit-owner coverage a condition of their bylaws. 

The goal, then, is not to skip buying condo insurance  but look for ways to save money. 

 1. Does bundling condo and auto insurance save money? 

Yes, buying your condo and car insurance policies from the same provider can earn a multi-line (bundling) discount, usually 5% to 20% off one or both policies.  Some insurers can offer higher bundled discounts. 

Two things to check before you bundle: 

• Compare bundled total against best separate quotes: A 15% discount on an expensive base rate could still cost more than two cheaper standalone policies. 
• Ask what else qualifies for a discount: Multi-vehicle, motorcycle, and group or affinity discounts often stack on top of a home and auto bundle. 

Compare condo insurance quotes and ask each insurer for its bundled price. 

2. Does a higher deductible lower condo insurance premiums? 

Yes. The deductible is the amount you pay out of pocket on a claim before your insurer covers the rest. The more risk you take on, the less aninsurer charges you on premiums.  

Most condo policies carry a deductible between $500 and $2,500, with $1,000 the usual middle-of-the-road pick, according to Fleur Dsouza, LowestRates.ca insurance expert and licensed insurance broker. Water damage sometimes carries its own, higher deductible, she notes.  

Just don’t expect a windfall. “Moving from $500 to $1,000 generally gives a modest premium reduction, and going up to $2,500 saves a bit more. Real-dollar savings tend to be small and vary by insurer, so talk to your broker to see the true difference for your unit,” Dsouza says. 

How high could your condo deductible be? 

Only as high as you could pay tomorrow from savings in the event of loss or damage to your unit. Dsouza says a higher deductible stops making sense in two situations: When the annual savings are minor next to the extra you’d pay per claim, since “it can take many claim-free years to break even”, or when covering that amount on short notice would be a real financial strain. 

“That’s why a solid emergency fund matters: if you can comfortably cover your deductible on your own, you can choose a higher one with confidence,” she says. Keep that amount in an account you can reach, so a burst pipe does not turn into credit card debt. 

What about a condo corporation's deductible? 

If a loss starts in your unit, your condo corporation can charge its building deductible back to you, and not only when you’re at fault. Condo owners most often overlook this risk. 

“If a leak starts in your unit because of something you, a tenant, or a guest did or didn’t do, the condo corporation can pass along the cost of the repairs, up to the amount of its insurance deductible,” Dsouza says. Many corporations also have a by-law extending the chargeback to no-fault losses, including damage that spreads to neighbouring units and common areas. The Condominium Authority of Ontario advises every owner to know when they may owe that deductible.  

Your policy’s loss assessment or deductible coverage is what pays this amount, up to a limit you choose. “Since building deductibles are often $25,000 to $50,000 or more, you’ll want a limit that matches or exceeds your building’s deductible, because if it falls short, you’d be responsible for the difference,” Dsouza says.  

Building deductibles can change at every renewal. Check your  corporation’s certificate of insurance each year and confirm your coverage limit still aligns. 

3. Which safety and security features lower condo insurance? 

“Insurers like anything that lowers the chance of a loss. Monitored fire and burglar alarms are one of the most common ways to earn a discount on your condo policy,” Dsouza says.  

The system has to be professionally monitored around the clock, she explains, and your insurer may ask for a certificate or letter from the monitoring company as proof. Many insurers also reserve the full discount for alarms monitored by a ULC-listed station. A siren that only sounds locally may not qualify at all. 

The bigger payoff is protection: “If a fire starts or someone tries to break in, help can be on the way even when you’re at work, travelling, or fast asleep,” Dsouza says.  

Ask your broker what your insurer recognizes, what proof is required, and how much the discount would be for your unit. Remember to send in the monitoring certificate if required to lock in your savings. 

4. How much is a claims-free discount worth on condo insurance? 

Usually 10% to 20% of your premium, and it can increase the longer you go without a claim. The discount cuts both ways. The Financial Consumer Agency of Canada warns that making a claim may increase future premiums, and a single claim can remove the discount for three to five years. 

Should I file a small condo insurance claim? 

Calculate how much a claim could cost you. “Think of insurance as your safety net for big moments, not something to use for every little mishap,” Dsouza says. If the loss is only a few hundred dollars above your deductible, paying it yourself and keeping a 15% discount on a $600 to $900 condo premium often comes out ahead over the next three years. 

The stakes go beyond your insurance discount. Dsouza says more than one claim can make you very hard to insure, with insurers declining to offer or renew coverage or charging much higher premiums.  

Save claims for large, financially straining losses such as a serious water leak or fire.  Always report liability incidents and anything involving a neighbour’s unit, since those issues can escalate. “If it’s well beyond what you could comfortably absorb, that’s exactly what your insurance is there for,” she says. 

How do I protect a claims-free discount I already have? 

Ask about claims forgiveness or a disappearing deductible: Most insurers require a few claims-free years to qualify. Dsouza says mechanics of a claims-free discount varies by insurer. Ask your broker what’s available and how your insurer treats claims at renewal.  

Claims forgiveness means your insurer won’t raise your premium or remove your claims-free discount after your first claim, so one unlucky leak doesn’t undo years of savings.  

A disappearing (or vanishing) deductible shrinks your deductible by a set amount for every year you go without a claim, sometimes down to zero, so you keep more money in your pocket if you ever do need to file. Most insurers require a few claims-free years to qualify for either. 

Some other tips: 

• Prevent common claims: Replace washing machine hoses with braided steel, shut off the water when away more than a few days, and know where your unit's shut-off valve is. 
• Check your renewal notice: Some insurers quietly drop the discount after five or seven years. Confirm the discount is still applicable. 

Related: How do home insurance claims affect your rates? 

5. Should I shop around for condo insurance at every renewal? 

Yes, every year when your policy term is nearing renewal is the best time to shop around for cheaper rates. Each insurer prices the same unit differently, so two quotes for identical coverage can be hundreds of dollars apart.  

When is the best time to switch condo insurance? 

At renewal is the best time to switch condo insurance. Cancelling mid-term can trigger a short-rate penalty, and you may lose a loyalty or claims-free discount that has not yet transferred. Start comparing 30 to 45 days before your renewal date, so your new policy begins the day the old one ends. 

How do I compare condo insurance quotes fairly? 

• Quote the same deductible, contents limit, improvements and betterments limit, and loss assessment or deductible coverage limit on every quote. A cheaper quote with a lower loss assessment limit is not always a saving. 
• Include sewer backup and overland water if your unit is at or below grade.  
• Ask the same discount questions of every insurer: Bundle, alarm, leak detection, claims-free, group or affinity, annual payment. 
• Tell your current insurer the best competing quote. Many will match or re-rate rather than lose a client. 

Learn more: What are the closing costs for a new condo? 

Frequently Asked Questions (FAQs) 

Is condo insurance mandatory in Canada? 

No law requires condo insurance, but most mortgage lenders do. Many condo corporations require unit owners to carry insurance in their bylaws or declaration. Even where insurance is optional, going without condo coverage can leave you exposed to a corporation's deductible chargeback and liability for damage that could spread to other units. 

Which condo insurance discount can save the most? 

For most condo owners, bundling with auto (up to 10% to 20%) and a long claims-free record (10% to 20%) are the largest single insurance discounts. Shopping around can beat both, because the gap between insurers' base rates is often wider than any one discount. 

Can I combine all five condo insurance savings? 

Yes. Bundle, claims-free, security, and deductible discounts stack with most insurers. Shop the bundled, discounted price across several companies at renewal to capture all five at once. 

Bundle where the discounts work in your favour. Carry the highest deductible you could pay from savings tomorrow, add leak detection and a monitored alarm, protect your claims-free record, and re-quote every renewal. Together those strategies can offset premium increases most Canadian condo owners have faced over the past few years without risking a gap in coverage. 

Read next: Why first-time condo buyers should weigh price declines against higher interest rates in Canada