Definition : Insurance - Insurance insufficiency (under insurance)

Insufficiency of the amount declared to the insurer at the time of subscribing the insurance policy, in relation with the actual  value of the insured immovable. In case of loss, it generally gives rise to an indemnity reduced to:

 

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June 28th, 2020 - The law concerning co-ownership insurance has undergone major changes since June 2018.  Section 1070 of the Civil Code of Quebec now contains a third paragraph, which provides that the syndicate keeps a sufficiently precise description of the private parts available to the co-owners, for insurance purposes, so that the improvements made by the co-owners are identifiable. The same description may apply to several parties when they have the same characteristics.   
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Bill 41 came into force on March 17, 2020. It creates a new obligation for any syndicate of co-owners formed before June 13, 2018 (the date of the publication of the declaration of co-ownership), namely the production and adoption, before June 13, 2020, of a description comprising one or more private reference parties. However, some syndicates have neglected to do so. Nevertheless, there is still time (for them) to rectify this situation. Those who do not yet have this description of the private parties have a good interest in getting into it as soon as possible, otherwise the consequences could be severe, not only for a syndicate, but also for the civil liability of the directors. Consult the practical sheet Who has to insure the improvements made to private portion? to learn more about this subject.   
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Question: We suffered water damage. Three apartments, including mine, were affected by a broken hot water tank. 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. Is he right?
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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.  
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The Law and the overwhelming majority of declarations of co-ownership require that syndicates of co-owners insure their building. This may seem surprising at first glance as the syndicate does not own the private portions nor the common portions. However, its main object is to ensure the preservation and the longevity of the building and to manage and administer it diligently following rules of the trade. This is why the legislator has given to the syndicate an insurable interest and has made it compulsory that it subscribe building insurance.  
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