Changes to divided co-ownership insurance: find out more about apportionment

Changes were made to the coverage for divided co-ownership insurance following amendments to the legislation that governs divided co-ownership in Quebec. One of the changes has been the introduction of the notion of apportionment. 

Apportionment: All for one

The syndicate may claim an amount of money from the co-owners to repair damage caused to the portions it is responsible for insuring. Under the legislation, it is obligated to apportion this amount among all the co-owners according to their share, whether they have suffered damage or not

Examples of such a situation:

  • The syndicate’s insurance does not cover the damage suffered.
  • The cost of the damage is less than the syndicate’s deductible.
  • The syndicate’s insurance is not enough to cover all of the damage.
  • The syndicate decides not to file a claim for the damage with its insurer.

N.B. While your syndicate has the right not to file a claim with its insurers, it is bound to repair the damage. 

Rest assured: your co-owner insurance policy contains a new coverage to cover the apportionment.

To benefit, you must be insured for the risk for which an apportionment was imposed on you by the syndicate (i.e., if the damage was caused by a sewer back-up, you must have this coverage in order for your insurer to cover the apportionment). In addition, this coverage provides for a maximum amount (limit) for your reimbursements. You will also have to assume the deductible under your co-owner insurance policy.

However, you should know that:

  • If your syndicate is not insured for the risk that caused the damage, your insurance policy may only cover 90% of the apportionment amount. 
  • This guarantee does not cover apportionment amounts claimed by your syndicate for the payment of its deductible.  

Coverage to consider

Since you are exposed to all sorts of risks which your syndicate may apportion to you, to be well insured, purchase coverage for the risks to which your building may be exposed. In this regard, the sewer back-up coverage would be necessary, even if your unit is on the 10th floor, just as water seepage through the roof is if you live on the ground floor. This coverage is even more important given that water damage is the leading cause of divided co-ownership claims!

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