Condo leasing is on the rise in Ontario. A report from the second quarter of 2026, showed a record 18,923 condo units were leased, an increase of 5% compared with the same period a year earlier.

For condo owners choosing to enter the rental market, finding a tenant is only part of the process.

As a recent Canadian Underwriter article highlights, many owners are not aware of the risks of renting out their condo.

One important step is notifying their insurance broker when the unit’s occupancy changes. A condo insurance policy written for an owner-occupied unit may not provide the same protection when the unit is tenant-occupied.

The same applies if the unit is temporarily vacant while the owner searches for a tenant or completes renovations. The insurance policy must always reflect the unit’s updated and current status. Not keeping the condo insurance policy up-to-date and accurate may mean that important coverages aren’t there when they’re needed most!
 

Occupancy Changes Risk

Coverage limits and options can vary significantly by occupancy. Owner-occupied condo policies, for example, often include higher limits for valuable protections such as condominium deductible assessment, improvements and betterments, and additional living expenses.

When the owner no longer lives in the unit, insurers may remove a first claim forgiveness extension and may substantially reduce the available deductible assessment coverage.

These differences can create costly gaps. Especially where newer condo corporations may have more restrictions in their master policies. Also, condo boards are increasingly choosing higher deductibles on master policies to reduce insurance costs.

Unit owners may not realize that their personal condo policy should be reviewed and adjusted to help cover an assessment if they are held responsible for the corporation’s deductible.
 

Make Sure You’re Adequately Covered

A minimum of $50,000 in condominium deductible assessment coverage is often recommended but the appropriate amount depends on the corporation’s master policy and the insurance policy’s terms. Without enough coverage, the financial impact can be substantial.

For example, suppose a water leak causes $100,000 in insured damage and the condo corporation’s deductible is $50,000. If the unit owner’s personal policy provides only $25,000 in deductible assessment coverage, the owner could face the remaining $25,000 out of pocket, depending on the circumstances and policy terms.

The takeaway is simple: keep your insurance broker informed!

Whether the condo becomes a rental, sits vacant between tenants, or undergoes renovations, a timely conversation can help ensure the policy matches the risk and that coverage limits remain appropriate.

Questions about a condo insurance policy? Property insurance can be complicated but we’re here to help.

Reach out to a Staebler Insurance Broker to discuss your options and ensure you’re properly covered.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business insurance, and commercial insurance. Staebler Insurance Brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region, the Greater Toronto Area, Golden Horseshoe, Niagara Region, and all over beautiful Ontario, Canada. 🍁 Get a Quote to get started today.