How condo insurance works How condo insurance works How does it help me? You get financial protection if your condo, or the things inside it, are damaged or stolen. From fire and water damage to theft and break-ins, condo insurance covers the cost to repair or replace your property so that you don’t have to. Do I need condo insurance? You’ll need condo insurance if you’re taking out a mortgage to buy it. Banks and mortgage lenders in Ontario require that you have insurance before approving a mortgage loan. How much coverage do I need? That depends on what you need to protect! Before buying insurance, do an inventory of your condo to determine how much coverage you need. Does condo insurance only cover my property? Condo insurance provides personal liability protection if you’re sued. You also get coverage for your condo building’s shared spaces if you’re obligated to help cover damage to them.