Severe loss which may have dire consequences upon the syndicate of co-owners. In such circumstances, the insurance indemnity is paid to an insurance trustee. Criteria to establish what constitutes a "substantial loss" may be introduced by regulation of the Quebec Government.
If your co-ownership suffers a "substantial loss" as a result of an incident, you must use the services of an insurance trustee in accordance with article 1075 of the Civil Code of Québec. This section stipulates that "the indemnity owing to the syndicate following a substantial loss is, notwithstanding article 2494, paid to the trustee appointed in the Constituting Act of the co-ownership or, when none has been appointed, designated by the syndicate".
The insurance trustee is a key person. His role is to manage the indemnities paid by the insurer. It ensures that the money available is in fact used to "repair or rebuild the immovable". All in all, the interest of the co-owners and their hypothecary creditors is protected. Indeed, it is in their best interest that the immovable is repaired or even rebuilt.