Condo insurance

Do you own a condo, and are you on your condo’s board of directors? It is important to know all about insurance as it provides coverage against the major financial consequences of a loss and by extension your assets. 
 

In all cases, this responsibility is shared  among  all the co-owners and the syndicate, whether for the appropriate insurance coverage or when filing a claim.   

Two insurance policies cover co-ownership:

  • The co-owner’s insurance for his condo unit;
  • The co-ownership syndicate’s insurance, which is a commercial insurance contract.

Is condo insurance mandatory?

Under the Civil Code of Quebec, all co-owners and the syndicate are required have civil liability insurance.    

The syndicate must also insure the building against the usual perils, including fire and vandalism.

A co-owner may also be required to take out specified insurance coverage under the Declaration of Co-Ownership. So before you insure your condo unit, make sure you read it thoroughly to find out what your obligations are.

Co-owner insurance: types of coverage

You generally have a choice of two policies for your condo insurance: 

  • Specified Perils, which covers your property against certain risks specified under the policy, as well as your civil liability. 
  • All Perils, which covers your property against all risks, except those expressly excluded under the policy. It also covers your civil liability. Choosing this formula will cost you more, but it also provides broader coverage. 

Who is insured under your policy?

As well as you and your spouse, your policy also covers:

  • Dependent students, even if they live outside of the principal residence;
  • Children under age 18  in your care and who live with you;
  • Any dependent adult.

Who sells home insurance?

  • An insurance broker: a broker offers the products of companies with which they have agreements;
  • An insurance agent: the agent works for a specific insurance company.

You can contact either by phone. You can also request a proposal from a number of insurance companies using the application form on their website. 

Declaration of Co-Ownership

It is important that you read your Declaration of Co-Ownership to know exactly which insurance policy covers each portion of the building. More than likely, it will impose some additional coverage, for example, sewer back-up endorsement, etc.

 The Declaration of Co-Ownership also contains the:

  1. Constituting Act of Co-ownership. It defines the destination of the building, the private and common portions, relative value of each fraction, and stipulates the powers and duties of the board of directors and the general meeting of the co-owners. It also includes the description of the private portions.

  2. Building by-laws, namely the operational and administrative rules of the co-ownership. 

  3. Description of the fractions, namely the cadastral designation of the portions.

 

8 things condo syndicates should know

The laws and regulations governing co-ownership have resulted in various changes and obligations that are important to know, as are certain particularities relative to condo insurance.

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