A loss causes damage to a condo unit and to the condo building. The syndicate is responsible for having the damage repaired. It can choose to file a claim with its insurer or not.  In this example, it decides to file a claim with its insurer. How does this work?  Here are explanations.

For the syndicate

If the loss is covered, the insurer indemnifies the syndicate, less the applicable deductible. To cover the amount of its deductible, the syndicate can:

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

And if a person is responsible?

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

For the co-owner

If improvements were damaged in a condo, the co-owner’s insurer will cover the claim for that portion. 

  • The co-owner may be required to pay his share of the syndicate’s deductible, regardless whether or not the co-owner’s unit was damaged. 
  • The syndicate’s deductible is not generally covered under the co-owner’s insurance. This amount must be assumed by the co-owner.  

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.

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