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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For co-ownerships created before June 13, 2018, it is essential to adopt one or several descriptions of the private portions of reference before June 13, 2020. In the absence of one or several descriptions made available to the co-owners by this deadline, the co-ownership will be deemed having no improvement as of October 31, 2017. This could lead to situations of insurance insufficiency, since components that were previously insured by the co-owners, will then automatically fall under the coverage of the Syndicate's insurance. In addition, this could lead to unfair situations for co-owners, by having insurance paid by some for the improvements of others. To the extent that the preparation of this description(s) will require a consultation and a vote of the co-owners gathered in a general meeting, you have only a few months left to attend to this matter at your next annual general meeting to be held in the summer or in the fall of 2019. At the 2020 general meeting, it will already be too late!  
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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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