The legislation requires that all co-owners have civil liability insurance. This covers damage which you may cause to another person or to their personal property.
The minimum amount you are required to purchase for civil liability insurance depends on the number of units in your building:
This rule also applies to commercial condo units.
In this case, to find out how much insurance coverage your need, take into account the number of units in your building*.
Your syndicate manages 30 condo units located in three (3) separate buildings.
Number of units
Amount in civil liability
The co-owners of building A are required to purchase $2 million in civil liability coverage, while the co-owners of buildings B and C are required to purchase $1 million in coverage.
*Your declaration of co-ownership could include a definition of what is meant by “building”. This could modify the example given here for information purposes.
Your insurer may evaluate your condo to be at greater risk of loss, even if your condo building has 12 units or less.
For example, in the case of a townhouse condo, your insurer will take into account its location and its exposure to risk. Are these buildings very close to one another? Is there a high risk of fire spreading from one building to the other? Your insurer will evaluate all these factors and could then recommend or require a higher civil liability insurance amount.
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