Two Contracts. Better Coverage.
Firstly, it is important to remember that every co-ownership must be insured by two contracts: one, subscribed by the syndicate of co-ownership and another, subscribed by each of the co-owners of the building.
Your contract, as a syndicate, must:
- Cover the building, common areas and the original layout of each condo;
- Cover the building in amounts sufficient to allow for its complete reconstruction;
- Combine all the standard protections to cover property and civil liability in the event of a disaster. Your insurer will also suggest that you include optional coverage in your contract, for example for floods or earthquakes.
The condominium insurance contract covers:
- Their personal belongings;
- Their civil liability;
- And the improvements made to the condo unit.
As of April 15, 2021, an appraisal of the value of the building must be performed every five years by a member in good standing of the Ordre des évaluateurs du Québec. Do you remember the last time you had your building evaluated? Put a reminder in your agenda now!
The Self-insurance Fund, an Essential Cushion
Managed and constituted by the co-ownership syndicate, this fund is used to cover the sums which you will have to assume as a deductible or the sums disbursed when the insurance indemnity and the contingency fund are not sufficient. In fact, as of April 15, 2022, as a syndicate of co-ownership, you will be required to create this fund. For more information, talk to your broker right away.
Moving Towards Mandatory Liability Insurance
As of April 15, 2021 (definitely circle that date on your calendar!), liability insurance will be mandatory for trustees. Since you expose yourself to the risk of lawsuits by being involved in the management of important assets, protect yourself properly with this type of insurance. It limits the impact of financial consequences for which you are personally responsible.
Describe your Condos as they Were Originally
If you were not aware, as of June 13, 2020, you are required to prepare a document describing the different types of units. The description must be detailed enough to clearly identify improvements made by the condominium owners to their condo, such as the installation of a heat pump and the selection of high-end countertops.
And as of April 15, 2021, still without this document:
- No improvements to the private areas will be considered;
- The total value of the building specified in your syndicate insurance may be assessed below its actual value;
- In the event of a claim, your insurance may not cover you adequately.
Get your pencils and keyboards ready! Give yourself a helping hand by writing this paper and help co-owners benefit from protection that is commensurate with the renovations made to their unit.