The several declarations related to co-ownership and the law requires that syndicate of co-owners of condominiums cover their building with appropriate insurance cover. The information could be a surprise to many because the co-owners syndicate does not own some of the common and private portions of the building. The main objective of the insurance cover is to preserve the lifespan of the building and administer and manage the residential complex using the rules covering the trade. This is the reason why Assurance copropriété has been made mandatory by the laws.

What are covered under the insurance?

The Volunteer trustee co-ownership insurance or Assurance copropriété syndic bénévole should cover common portions, syndicates moveable property and private portions but excluding improvements made by condo owners. The insurance will be in the name of the syndicate and will be considered as the insured thereafter. In this case neither the co-owners nor their hypothecated institutions are insured in this instance and that should be kept in mind all the time. the portions that are to be covered under the syndicate insurance should be clearly marked so settlement is simplified in case of losses.

What are the risks covered?

An all risk policy is advocated by the syndicate and the policy should not cover incidents like fire or theft but only the typical risks. In the policy only accidental losses are covered and non-accidental losses are not covered usually. The policy covers incidents that are random, sudden and the aftermath of unpredictable. The insurance cover also does not cover damages occurring out of defect in workmanship or latent defect at the time constructing the building. The same is applicable to losses occurring out of poor or lack of maintenance to the common portions of the syndicate. So it is important that the syndicate properly maintain the building because the insurer will not pay damage to these portions.  

Reconstruction cost or replacement cost

The insurance laws also require that the syndicate insurance is subscribed to cover the replace or reconstruction value. To be more specific the insurance policy must cover the reconstruction expenses of the immovable property. The reconstruction cost refers to the expenses that will be occurring in case it is required to rebuild the immovable portions for total loss. Here the wear and tear or depreciation is not taken in to account. Value of reconstruction should take demotion costs, fee for professionals like architect, engineer, and the retrofitting standards along with applicable taxes. The board of directors or the syndicate will be asked about the amount of coverage required at the time of subscribing the policy.