5 things co-owners should know
It is important to know the various obligations of co-ownership, as well as certain particularities relative to condo insurance.
1. Being a co-owner is being an owner
You and all the other co-owners own the entire condo building and not just your individual units. That’s why all together and the syndicate are responsible for protecting the whole building, as any homeowner would do.
2. Building maintenance
Your building’s maintenance is up to all of you. The better maintained the building is, the more favourable the insurance coverage and cost will be and the lower the syndicate’s deductible. It is all the co-owners who will benefit from it.
3. Syndicate’s deductible
It’s important to know the amount of your syndicate’s insurance deductible since you may have to assume part of it if there is a claim. This deductible amount will also be used to determine your co-ownership’s self-insurance fund, which is financed by all of the co-owners.
4. Description of the private portions
Your syndicate must make a description of the standard unit available to all of the co-owners. Has your syndicate done that? This description is useful for identifying the improvements made in your unit over time, which you must insure with your co-owner policy. It is also needed to determine the correct amount of insurance the syndicate requires for the entire building.
5. Absence of coverage or insufficient insurance
If your syndicate does not have sufficient insurance or is not covered for the damage to the building, it can apportion the amount of the damage and the deductible among all of the co-owners. You may have coverage in your co-owner policy for these apportioned amounts, except the deductible. Check with your insurer before a loss occurs.