A loss causes damage to a condo unit and to the condo building. However, the amount of the syndicate’s insurance policy is not sufficient to cover the damage. There is insufficient insurance when the amount of the damage is higher than the amount of applicable insurance. How does this work? Here are explanations.

For the syndicate:

The syndicate must repair the damage caused to the personal property and to the building for which it is responsible.   To cover the cost of the repairs, it can:

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

And if a person is responsible?

  • The syndicate can claim the amount of the damage from the person responsible. This could be a co-owner or a third party. 

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 the amount of the deductible and damage claimed by the syndicate, regardless whether or not the co-owner’s unit was damaged. 

  • However, to be compensated for the apportionment amount claimed by the syndicate, the co-owner’s insurance must include coverage for the loss that caused the damage.  
  • The deductible is generally not reimbursed under the co-owner’s insurance.
  • The co-owner’s policy generally covers 100% of the amount claimed by the syndicate, up to the amount under the Extension of Coverage – Loss Assessment.  
  • The co-owner must pay his deductible.  

Note: It is very important for co-owners to purchase sufficient insurance for all perils to which they could be exposed through apportionment. They should consult the syndicate’s insurance policy to determine the insured perils and policy coverage limits.

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.

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.


Be prepared.
Download the Joint Report application!