In fact, following a loss, your syndicate can claim an amount of money from the co-owners to repair the damage to the portions that it is responsible for insuring.
Like the maintenance costs for the condo building, the cost of repairing the damage is a responsibility shared by all the co-owners. It is one of the common expenses and, under the law, the syndicate is now obliged to apportion this amount among all the co-owners, regardless of whether they suffered damage to their unit or not.
Common expenses in the event of a loss
- Insufficient insurance: the syndicate’s insurance amount does not cover all of the damage suffered.
- Absence of insurance: the syndicate’s insurance policy does not include coverage for the cost of repairing the damage suffered.
- Syndicate’s deductible: the amount the syndicate assumes following a loss.
What your insurance policy covers in case of apportionment
Rest assured: your condo insurance policy contains coverage for this special assessment. It is called Extension of Coverage – Loss Assessment. Your condo insurance can cover all of the apportionment or part of it, up to the limit stated under your policy.
However, to benefit from such coverage, you must be insured for the loss that caused the damage claimed by the syndicate.
A sewer back-up, for which your syndicate is not sufficiently insured, causes damage to the building. The syndicate therefore charges you an amount based on your share. You must have additional coverage for sewer back-up to have the special assessment reimbursed.
Your insurance policy generally excludes the apportionment of the syndicate’s deductible. You must therefore personally assume this amount (your share) if the syndicate decides to apportion its deductible. Note that the syndicate may also choose to use the amount accumulated in its self-insurance fund to cover the deductible.
If your syndicate considers you are responsible for damage to the building, it may claim the amount of the damage not covered by its insurance, including its deductible. If this happens, you will be covered under your civil liability insurance.