A loss causes damage to a condo unit and to the condo building. However, the damage is less than the syndicate’s policy deductible. How does this work? Here are explanations.

For the syndicate

The syndicate must have the damage caused to the condo building property repaired. To cover the cost of the repairs, it can:

• Withdraw the money from its self-insurance fund;
• Apportion the amount of its deductible among all the co-owners based on their share. 
   

For the co-owner

If improvements to the co-owner’s unit were damaged, the co-owner’s insurer will cover the claim for that portion. 

• The co-owner may be required to pay his share of damage claimed by the syndicate, regardless whether or not the co-owner’s unit was damaged. 

• The deductible is generally not reimbursed under the co-owner’s insurance. In this case, the co-owner will have to assume it personally. 

What if a co-owner is responsible?

The responsible co-owner has civil liability coverage. His insurer will defend him and if he is held responsible, it will indemnify the parties that suffered the damage as per the provisions of his condo insurance.