Seismic tremors and abrupt deformations of the Earth's crust produced by the release of energy, when the Earth's tectonic plates start to move. In the Quebec-Ontario corridor, the risks of an earthquake occurring over the next 50 years range from 5% to 15%. These figures come from a report on financial institutions produced in 2015 by the Autorité des marchés financiers (Financial Markets Authority) (see page 14 of the document). The insurance contracts of the syndicate of co-owners rarely cover earthquakes. To benefit from such coverage, a syndicate will have to subscribe a specific rider. The purpose of this rider is to extend - for an increase in the premium - the insurance coverage to this type of risk.
The Self-Insurance Fund will become mandatory on April 15, 2022 following the adoption of the Bill 141, in 2018, which notably created section 1071.1 of the Civil Code of Québec. It had become necessary due to a substantial increase in insurance deductibles. Most of the time, the amount of these deductibles was formerly negligible, whereas today, it can reach tens, even hundreds of thousands of dollars.
Several syndicates of co-owners did not wait, or will not wait until April 15, 2022, in order to constitute a Self-Insurance Fund, according to their management based on logic and pragmatism.
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.