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.
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:
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.
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.
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.