Definition : Insurance fund

Fund dedicated to the payment of various sums that the syndicate of co-owners must pay in relation to the insurance coverages of the co-ownership. This may include amounts arising from deductible, insurance premium and insurance insufficiency. It is the result of an accounting management process consisting of isolating a certain amount of money which may be deposited in a separate bank account. Unlike the contingency fund, the insurance fund is not mandatory in the strict legal sense.

 

 

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November 1st 2016 - A condominium syndicate has the obligation to report its operations using the fund basis of accounting. The article 1071 of the Civil Code of Quebec imposes indeed the creation of a contingency fund. Every condominium has to set up accounts distinguishing the general fund for common operations, sometimes called the administration funds, and the contingency funds.
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