- Insurance : Co-owner Insurance
Definition : Insurance - Co-owner Insurance
Insurance covering risks associated with owning a private portion generally covering the personal liability of the co-owner towards third parties, the improvements that have been made to the private portion, the furniture and the insufficiency of the syndicate’s insurance coverage.
When you own an apartment in a co-ownership, you share the common portions, such as the roof, the lobby and the elevators in undivided ownership with the other owners. By the same token, you also share a portion of the liabilities attached to them.
Almost every insurance policy includes deductibles, in varying amounts according to the insured risk (e.g. fire and water damage). In co-ownerships, deductibles are a factor in the Building insurance, and in the third party liability insurance of the syndicate, directors, general meeting officers, co-ownership manager (gérant) and of the condo manager (gestionnaire). Regarding co-owner’s insurance, generally each home insurance policy contains one or more deductibles for various amounts according with the nature of the loss.
Un copropriétaire doit s'assurer pour sa responsabilité civile, ses biens meubles et les améliorations qu'il a apportées à sa partie privative.
Legal fees may hold back those co-owners wishing to assert their rights. Legal expenses insurance overcomes this obstacle.
What is legal expense insurance?
This insurance allows the reimbursement, in part or in full, of lawyers' or notaries' fees to prevent or resolve a dispute. However, this guarantee is subject to pre-established conditions, deductibles and caps.
Insurance companies offering legal fees insurance can propose a lawyer, although it cannot impose him to you. You remain free to retain the lawyer of your choice.
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. Remember that the insured must declare to his insurer any circumstance resulting from events within his control, which aggravates the risks stipulated in the insurance policy. This will avoid horror stories on the occasion of a loss.
Most declarations of co-ownership compel you, as a co-owner, to take out and maintain in force civil liability insurance and insurance for your movable property and the improvements to your private portion.
But beyond these often mandatory insurance coverage, you can also purchase optional complementary insurance. Be aware that this insurance product does not cover all risks.
Here are some scenarios under which complementary insurance coverage could be of great assistance.
In your eagerness to finalize your offer to purchase, you may forget to ask the co-owner-seller if, over time, work has been carried out in the apartment. Yet, this question is of the utmost importance as it will allow you to ensure, as the case may be, that it has been executed correctly and legally.