How to protect your condo

What is a condo? 

When you buy a condo, you become the owner of your unit as well as your building’s common spaces like the lobby, the roof, the grounds, and so on. That’s why you need to have two different types of insurance: one to cover your unit and the other for the building’s shared spaces.

What is co-owner insurance? 

That is the portion of your policy that covers your unit and your civil liability as a homeowner. This insurance also covers any improvements that you may make to your unit after purchase, such as installing a heat pump or new cabinets.

What is co-ownership syndicate insurance? 

This insurance covers the building itself, including all the common areas and original fittings (e.g. floors, counters and cabinets installed prior to any renovations or improvements). Co-ownership syndicate insurance also covers the civil liability of the syndicate and its board members. The syndicate should also take out property insurance for the building’s full replacement value against customary risks like theft or fire.

What to do in the case of damage or loss?

Everything required to restore your unit to its original state is covered by the co-ownership syndicate’s insurance. This includes restoring your walls, floors or counters to their original condition. Your own condo insurance covers the cost of replacing personal property such as a kitchen range. This protection also covers extra expenses to improve original fittings, e.g. the cost of replacing original melamine countertops with granite ones.

What are the new legislative changes in Quebec?

Several changes affecting the insurance of divided properties (i.e. condos) were recently adopted by the Quebec legislature. These provide a clearer definition of the respective responsibilities of co-ownership syndicates and individual condo unit owners: 

• The co-ownership syndicate board members are legally required to obtain a professional evaluation of the building every five years. The insured amount on the entire building as such in the syndicate’s collective insurance policy must cover the building’s full reconstruction cost.
• Co-ownership syndicates are now required to prepare a register of all the privately-owned condo units in their building. This should be sufficiently detailed to allow for easy identification of improvements made by condo owners to their units.
• Syndicates have until April 15, 2022 to constitute and manage a self-insurance fund to pay for their insurance policy’s maximum deductible in the event of any claim, excluding that required for earthquakes or floods.
• Civil liability insurance became mandatory for syndicate board members as of now. 

Learn more

For more information, this video summarizes the main legislative changes affecting condo insurance in Quebec. 

Still have questions or want to know more about how these changes could affect your insurance products? Don’t hesitate to contact your broker for all the answers you’re looking for!