Water damages represent the main cause of loss in co-ownerships (condominiums); this is why it's essential to conclude an insurance contract in order to be covered against future water leaks. It's important to note that the syndicate has an insurable interest in the entire immovable including the private portions; he must negotiate insurances providing a reasonable deductible against the usual risks covering the entire building excluding improvements made to a private portion by a co-owner when they can be identified in relation to the description of this part.
Insurance of the syndicate of co-owners
In addition to taking out insurance providing a reasonable deductible against usual risks covering the entire immovable excluding improvements made to a private portion by a co-owner when they can be identified in relation to the description thereof, the syndicate must also be insured regarding its civil liability towards third party members, those of the board of directors and the co-ownership manager as well as the president and the secretary of the meeting of co-owners and other people responsible for seeing its smooth running and so, in accordance with section 1073 of the Civil Code of Québec.
Furthermore, unless the insurance policy or the rider expressly indicates in clearly legible characters the risks that are excluded, section 4 of the Regulation to establish various measures in matters of divided co-ownership insurance published on April 15, 2020 in the Gazette officielle du Québec provides a specific list of risks covered "by right" in a property insurance contract, that is to say theft, fire, lightning, storms, hail, explosions, sewer backup and overflows from appliances connected to water distribution piping in the building, strikes, riots or civil disturbances, the impact of an aircraft or vehicle as well as vandalism or malicious acts.
Insurance of the co-owner
In principle, most insurance policies of co-owners don't cover damages caused by sewer backups or surface water such as overflowing lakes and rivers, heavy rains and snowmelt in the spring; thus, a co-owner has every interest in having additional protections regarding water damages added to his insurance contract.
Furthermore, each co-owner is required to insure himself against the risks of civil liability for which he must answer in his capacity as an occupant or non-occupant co-owner.
WHAT YOU SHOULD KNOW! According to the Insurance Bureau of Canada, between 30 % and 35 % of co-owners don't have coverage for water damage which represents the leading cause of home insurance claims.
WHAT TO KEEP IN MIND: Water damages are the most common type of loss in divided co-ownerships.
WARNING! Each claim represents a cost for both the syndicate and the co-owners individually.
