Both you, as co-owner, and your syndicate will have to decide what type of compensation you want should a loss occur. There are usually two options when property is damaged.

Two Options to be Compensated

  • Without taking into account the depreciation of your personal property; it will be repaired or replaced by new items as per the policy terms.  
  • Taking into account depreciation; compensation is calculated based on the value of the items on the day of the loss.   

Examples of Compensation

Replacement cost (replacement cost value)   

Refrigerator purchased 10 years ago for  $800 
Price of a refrigerator with the same features today $1,000
Compensation: $1,000


Value on day of loss

Refrigerator purchased 10 years ago for  $800 
Price of a refrigerator with the same features today  $1,000 
Depreciation ($40 per year for 10 years) $400
Compensation ($1,000 - $400): $600

Property Inventory Tool

To estimate the value of your personal property, consult our Property Inventory tool.

For the Condo Building  

Your syndicate is responsible for repairing the damaged portions, and if it files a claim, it could be compensated at replacement cost value.

Damage to the “building” portions of your private portion (floors, walls, ceiling, etc.) are usually covered by your syndicate’s insurance. The syndicate is responsible for having the damage repaired. 

If you or previous co-owners have made improvements to your condo unit since it was built, your co-owner insurance will usually pay the difference (known as added value). 

Insurance Amount that Corresponds to the Cost of Rebuilding

The compensation paid by the insurer to rebuild the building, which also includes the reconstruction of the condo units, shall not exceed the insurance amount stated under the syndicate’s insurance. This is why it is important for the syndicate to fully assess the building reconstruction costs and purchase insurance for this amount.

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.
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