Condo vs. HOA: Key Facts for Alberta Property Owners

When you’re buying a home, townhouse, or condo, you may hear terms like Condominium Corporation, Homeowner’s Association (HOA), bare land condominium, or traditional home. Each comes with unique responsibilities and different insurance needs. Here’s some useful information to help you protect your biggest investment.

Condo Corporation vs. Homeowner’s Association

Condominium Corporation:

A Condominium Corporation is a legal entity created under Alberta’s Condominium Property Act. It owns and manages the shared property and common areas of a condominium development — such as lobbies, hallways, elevators, parkades, and green spaces.

All unit owners are members and pay monthly condo fees to cover insurance, maintenance, and reserve fund contributions.

Homeowner’s Association (HOA):

An HOA is usually established by a developer to maintain and enhance amenities in a neighbourhood — like parks, pathways, or community recreation centres. It’s common in single-family neighbourhoods, bare land condos, or certain townhouse complexes. HOA fees are often lower than condo fees and generally don’t cover building insurance — just shared amenities.

What’s the Difference Between a Condominium, a Bare Land Condominium, and a Traditional Home?

Standard Condominium (Conventional Condo):

You own your unit (interior walls inward) while the Condo Corporation owns and insures the building structure and common areas.

Bare Land Condominium:

You own the plot of land and any structures on it — like a detached house or townhouse — but you’re still part of a Condo Corporation that maintains shared roads, green spaces, or amenities. Insurance responsibility depends on the bylaws.

Traditional Single-Family Home:

You own both the land and the structure. There may be a HOA for neighbourhood upkeep.

What Insurance Do You Need?

Conventional Condominium Unit Owner Insurance (Condo Insurance – Unit Owner’s Policy)

• Covers your unit’s contents, improvements & betterments, and personal liability.
• The Condo Corporation carries a master policy for the building structure and common areas.
• Always check if you need deductible assessment coverage in case you’re responsible for part of a claim under the Corporation’s policy.

Bare Land Condominium Insurance

• You likely need full home insurance for your building since you own the land and structures.
• Also includes personal contents, liability, and possibly coverage for shared property.
• Check your Condo Plan and bylaws to confirm exactly what the Condo Corporation insures.

Homeowner’s Policy (Traditional Home)

• Standard home insurance for the building, contents, and personal liability.
• If there’s an HOA, it usually insures only shared amenities — you remain responsible for your home and lot.

Helpful Tips

• Read your bylaws carefully — they determine what’s insured by the Condo Corporation and what you are responsible for yourself.
• Keep your broker informed if you renovate or make major upgrades to your unit.
• Ask about loss assessment coverage to protect yourself if the Condo Corporation’s master policy is insufficient.

Have Questions? We’re Here to Help.

Every property and neighbourhood is different — so is every insurance policy. Our experienced and friendly Brokers can review your documents, help you understand your responsibilities, and make sure you have the right coverage in place for peace of mind for you and your family.

Contact us today for a personalized review!

Your Costen Insurance Team

Note: this post was written with the help of AI.