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Damage insurance rule limiting the amount of the indemnity paid by the insurer in the event of insurance insufficiency (underinsurance). In the case of a partial loss, the indemnity is reduced proportionally to the premiums’ rate paid in relation to the premiums' rate that would have been due, if the amount of insurance had been equivalent to the value of the property (value that should have been insured). In the case of a total loss, the insurer is released by the payment of the amount of the insurance. There needs to be a clause in the insurance policy deleting or amending it in order to grant more rights to the insured, so that the latter avoids its application.
WARNING! This rule must be distinguished from the co-insurance clause.
27/04/2024
The law obliges syndicates of co-owners to insure their immovable; the majority of declarations of co-ownerships also have such requirement. This can be explained by the syndicate's main objective which consists to ensure the preservation of the immovable and its longevity; this is why the legislator has given to the syndicate an insurable interest and has made it…...
09/08/2022
Question: We suffered water damage. Three apartments, including mine, were affected by the breakdown of a water heater. The co-ownership’s insurer refuses to compensate us completely, claiming that our syndicate has paid too low a premium compared to the true risk insured. More specifically, it appears that the directors took out…...