Condo fees do include insurance on the condo but the insurance that the condo fees includes and pays for is just for the insurance for the main building and not your own condo.
When you pay your condo fees some of the condo fee you pay goes towards a homeowners insurance policy for the condo that pays for the exterior of the building as well as shared common areas of the condo building.
But the condo fees do not include insurance for your condo itself.
That means that if you want insurance coverage for your condo that you're living in then you would need to purchase a condo insurance policy yourself.
Because if something happens to the building your condo is in then your condo won't be covered or any of your personal belongings etc.
So you should get condo insurance whether it's mandatory or not.
If you have a mortgage on the condo you're buying the bank will require you to have condo insurance.
If you have a mortgage on the condo then yes condo insurance is mandatory.
The bank that holds the mortgage for the condo will require you to have condo insurance to protect the condo you're buying.
However if you have the condo paid for and have no mortgage on the condo or you pay for the condo in full without the bank then you are not required to have condo insurance.
The condo fees that you pay cover the actual building and property as well as hallways etc that the condo is built into.
But the condo insurance you have pays for damages to your personal condo or any damage from water etc that damages your condo.
Having condo insurance is highly recommended though to protect your investment into the condo should something happen.