The insurance provided by the syndicate of co-owners does not cover everything; that is the case regarding the deductibles and the exclusions. Also, it's possible that certain types of risks such as earthquakes and their consequences are not automatically covered by the insurance policy. So, in order to benefit from better coverage, it's possible to add protections called "optional and complementary warranties" to the insurance contract.
Insurance for professional fees
The insurance covering professional fees can be useful if the syndicate needs to pay the fees and the disbursements of the professionals in the case of a loss; it can be lawyers, notaries, architects, engineers or even land surveyors who have the mandate to give advice and, if applicable, to proceed to multiple studies to ensure the restoration of the immovable.
Insurance for the fees of the trustee
In the case of a substantial loss, the management of the insurance indemnities paid out by the insurer can become a very complex task and so, this is why the appointment of a trustee will be required; the fees of the latter can have a considerable impact on the finances of the co-ownership, reason for the syndicate of co-owners to take out this type of coverage.
Insurance of unpaid common expenses (condo fees)
In certain cases, notably when the building is significantly damaged following a loss, the syndicate of co-owners may not receive the payment of the common expenses (condo fees) which it absolutely needs; thus, some insurers offer a coverage (guarantee) specifically to overcome this situation on the condition that the loss in question is covered by the insurance policy.
Equipment breakdown insurance (breakdown of machines)
Equipment breakdown insurance (breakdown of machines) is intended to compensate for the lack of coverage of some insurance policies for the risks associated with the breakdown of mechanical, electrical, heating, air conditioning or refrigeration equipment; the economic consequences being significant, it is in the best interest of the syndicate to include this guarantee in the insurance contract.
Earthquake insurance
Earthquake insurance is used to cover the damages resulting from the shaking of an earthquake as well as those resulting from a subsequent fire, explosion or smoke; regarding this coverage, it consists of a rider that must be added to the insurance policy of the syndicate of co-owners.
WHAT YOU SHOULD KNOW! Some declarations of co-ownership impose subscribing complementary insurances.
WHAT TO KEEP IN MIND: The purpose of complementary insurance is to have better insurance coverage.
WARNING! Every insurance contract includes limitations and exclusions and this is why it's important to read the insurance policy to see what's covered.
