Are there special insurance requirements for a condo bathroom renovation in Ontario?

Yes, condo bathroom renovations in Ontario involve insurance requirements that go beyond what you would need for a house renovation — both your personal condo insurance and your contractor's insurance need to be properly aligned before any work begins. Getting the insurance right protects you from potentially devastating financial exposure if something goes wrong during or after the renovation.

The most important insurance requirement is that your contractor must carry commercial general liability (CGL) insurance with a minimum coverage amount that meets your condo corporation's requirements. Most Toronto condo buildings require a minimum of $2 million in CGL coverage, and some newer or high-end buildings require $5 million. Your contractor should provide a certificate of insurance naming the condo corporation as an additional insured for the duration of the project. Request this certificate before your contractor starts work and submit it to your building management as part of the renovation approval package.

Your Unit Owner Insurance

Every condo owner in Ontario should carry unit owner insurance (sometimes called condo unit insurance or an HO-6 policy). Before starting a bathroom renovation, review your policy for three critical coverages.

First, improvements and betterments coverage — this covers the value of upgrades and renovations you make to your unit beyond the original standard finishes. If your bathroom renovation costs $25,000 to $40,000, your improvements and betterments coverage should be at least that amount. Many default policies have low limits ($25,000 to $50,000) that may not be sufficient if you have renovated multiple rooms. Contact your insurance provider to increase this coverage before starting the renovation — the cost increase is typically modest, around $50 to $150 per year.

Second, personal liability coverage — this protects you if your renovation causes damage to another unit or common elements. A water leak from your bathroom renovation that damages the unit below could result in a claim of $20,000 to $100,000 or more. Ensure your liability coverage is at least $1 million, and consider $2 million for peace of mind.

Third, loss assessment coverage — this covers your share of the condo corporation's insurance deductible if a claim originates from your unit. Many Toronto condo corporations have master policy deductibles of $25,000 to $100,000, and the corporation can charge this deductible back to the unit owner responsible for the loss. Loss assessment coverage in your unit owner policy protects you from this charge.

WSIB Coverage

In Ontario, contractors and subcontractors working on your property should carry WSIB (Workplace Safety and Insurance Board) coverage. If an uninsured worker is injured during your bathroom renovation, you as the property owner could be held liable for their medical costs and lost wages. Request a WSIB clearance certificate from your contractor before work begins — this confirms they are registered with WSIB and their premiums are current. Your condo corporation will likely require this as part of the renovation approval process.

Practical Steps

Before starting your condo bathroom renovation, create an insurance checklist: confirm your contractor's CGL coverage meets the building's minimum, obtain the certificate of insurance, verify WSIB clearance, review and update your unit owner insurance for improvements and betterments, confirm adequate liability coverage, and add loss assessment coverage if you do not already have it. The total cost of proper insurance coverage is a small fraction of your renovation budget and protects you from risks that could cost tens of thousands of dollars.