The obligations of the syndicate of co-ownership in matters of insurance
Co-ownership syndicates are required to comply with several insurance obligations since the last reform of divided co-ownership law in Quebec. Thus, article 1073 C.C.Q. has been amended since the entry into force on April 15, 2021 of the Regulation establishing various measures for the insurance of divided co-ownership (...):
Mainly, the syndicate of co-ownership must take into account the following obligations:
the common portions AND the private portions must be insured by the syndicate: On their side, the co-owners must subscribe to an insurance policy to cover the improvements made to their private units. Therefore, if your unit is completely renovated using different and more expensive materials, your insurer will have to be informed and your insurance policy in force will have to be modified to extend its protection to these improvements. A register should be held by the syndicate and it should describes the private unit as delivered when they were acquired by the co-owner: the improvements made are therefore identifiable.
The amount of the building's insurance coverage must be assessed every 5 years by a professional, such as a chartered appraiser who is a member of the Ordre professionnel des évaluateurs agréés du Québec (the improvements made by each of the co-owners to their private units are not part of this building coverage amount).
This amount of the building's insurance coverage 'must provide for the reconstruction of the building in accordance with the standards, customs and rules of the art applicable at that time' according to article 1973 of the Civil Code of Quebec. It is therefore the reconstruction value, which includes in particular the full reconstruction value of the building to the required standards and the additional costs, such as the costs of demolition and debris removal, cleaning, to the standards, the costs of the permits, the fees of the professionals engaged in the reconstruction (lawyers, notaries, engineers, architects, etc.) and taxes.
Like each of the co-owners (article 1064.1 of the Civil Code of Quebec), the syndicate must also hold a civil liability policy against third parties as well as that of the members of its board of directors and any manager. Even co-owners acting as chairman and secretary of the co-owners' meeting must be covered for their civil liability. According to article 4 of the Regulation establishing various measures in matters of insurance for divided co-ownership (…), the syndicate's insurance policy must at least cover a series of usual risks which are described therein: “: theft, fire , lightning, storm, hail, explosion, leaks and overflows of sanitary installations and appliances connected to the water distribution pipes inside the building, strike, riot or a popular movement, impact of an aircraft or vehicle and acts of vandalism or malicious intent ”.
The insurance of your condominium building can be complex and understanding it could be difficult. Before or after a claim, we will be happy to advise and represent you in the event of a contested claim or a legal dispute.
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