Definition : Insurance - Replacement value

The rebuilding value of the immovable to its original state (or of its repair) used for the determination of the amount of the indemnity in case of a loss.  Replacement value coverage does not take into account the obsolescence (depreciation) of the immovable.

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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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Question: I just received the renewal of our syndicate of co-owners’ insurance policy. However, it includes a 90%. co-insurance clause. What is it about ?
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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).
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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 object is to ensure the preservation and the longevity of the building and to manage and administer it diligently following the rules of the trade. This is why legislator have given to the syndicate an insurable interest and has made it compulsory that it subscribe building insurance.
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