Additional premium required by the insurer in the case of a change occurring during the contract or at the occasion of the renewal and having the effect of increasing the risk or to increase the undertakings of the insurer.
2 avril 2019 — Une collectivité de copropriétaires d’Ottawa doit faire face à une explosion du coût de ses assurances, qui a presque atteint les 730 %. Ce taux astronomique découle du passage d’une tornade, en septembre, qui a endommagé certaines des 110 maisons de ville qui se trouvent dans ce complexe résidentiel.
A co-owner recently caused a water damage in our building. This resulted in a additional insurance premium for the syndicate's insurance.
Question: Can the board of directors claim the total amount from the co-owner at the origin of the incident?
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Even though some short-term residential rental websites offer insurance for that type of leasing, the fact that you are renting your apartment to tourists, remains essential information to be communicated to both your home insurer and your syndicate insurer. This will avoid horror stories on the occasion of a loss.
The insurance premiums are the amount paid by the insured monthly or annually to benefit in the event of a claim from the guarantees in the insurance policy. It is an expense towards the preservation, maintenance and administration of the immovable. Although the syndicate assumes this cost, it is charged back to the co-owners as a portion of their common expenses (condo fees).
The additional premium is a premium that is added to the existing premium. It results from a worsening of the risk or from the assumption of a new risk. This additional premium may be imposed during the course of a contract or upon its renewal. Risks are analyzed according to scales that are specific to each insurer. Ultimately, the syndicate will pay this additional premium, which will be charged to all of the co-owners through the common expenses (condo fees) or, at times, some of them.
Water damage is the leading cause of loss in co-ownership. It is more and more costly, for syndicates and their insurers. In the last ten years, occurrences of water damages have more than doubled.
Lack of maintenance, sub-standard construction and climate changes are the main culprits. In most cases water damage affects equally common and private portions, thus it is one of the most complex loss to adjust.