Definition : Insurance - Building insurance (syndicate of co-owners)

Avec une hausse marquée des sinistres au sein des copropriétés du Québec, il est possible d’entrevoir un durcissement du marché de l’assurance. Selon l’avocat émérite et secrétaire général du RGCQ, Yves Joli-Cœur, « Au rythme où vont les choses, cette situation pourrait conduire à une véritable crise de l’assurance en copropriété divise au Québec, voire à une instabilité grandissante dans ce segment de marché résidentiel. ». Le scénario catastrophe qui guette la copropriété, au Québec, serait que certains syndicats de copropriétaires ne trouvent plus d'assureur pour prendre le risque. Les syndicats de copropriétaires se retrouveraient dès lors « orphelins d’assurance ». Alors, quoi faire pour séduire les assureurs en copropriété divise ?  

22 octobre 2021 - Le 27 octobre, à 19h00, en direct sur la page Facebook de Condolegal.com, notre webradio traitera de la question « Les assureurs : quoi faire pour les séduire ? » Nos invités pour en discuter seront Valéry Couture, gestionnaire de copropriété, Annie Gosselin, courtière en assurance de dommages des entreprises chez Gaudreau Assurances ainsi que Me Maxime Laflamme-Leblond qui est un avocat spécialiste en immobilier et copropriété chez LJT. 

Une nouvelle réalité frappe plusieurs syndicats de copropriétaires au Québec: la perte de leur assureur, et l'obligation, dans plusieurs cas, de se tourner vers le marché de l'assurance secondaire, où les primes et les franchises sont prohibitives.

Un sondage commandé par le Bureau d'assurance du Canada révèle que bien des copropriétaires connaissent mal l'assurance condo. Ils ont pourtant intérêt à en maîtrisee les bases, sous peine de possiblement vivre des surprises colossales. 

Les copropriétés qui perdent leur assureur ne sont plus des cas isolés. Si la plupart d'entre elles parviennent à en trouver un autre pour recadrer le risque, les primes et les franchises n'en demeurent pas moins substantielles.

La loi oblige tout syndicat de copropriétaires à déclarer un sinistre, bien qu'il puisse ne pas réclamer d'indemnités. Ne pas déclarer un sinistre peut entraîner de graves conséquences.

Les sinistres qui proviennent d'une unité, au sein d'une copropriété, obligent bien souvent un syndicat à payer la franchise pour faire réparer les dommages occasionnés. Lorsque l'assureur du copropriétaire ne veut pas rembourser cette franchise, un syndicat peut intenter une procédure judiciaire. Cette webradio explique comment s'y prendre.

L'assurance du syndicat comporte plusieurs volets, dont celle des administrateurs et des officiers d'assemblée. Cette vidéo fait le tour des différentes couvertures propres à ce type d'assurance.

Almost every insurance policy includes deductibles, the amounts of which vary depending on the risk insured. For example, the deductible for water damage is usually higher than that for fire. The amount of the deductible will be deducted from any compensation paid. Its purpose is to make the insured responsible, by making him take charge of part of the repairs of the damage caused by the disaster.  The advantage for the syndicate is to see its premium reduced. In co-ownerships, deductibles are a factor in the Building insurance, and in the third party liability insurance of the syndicate, directors, meeting officers, co-ownership manager and of the condo manager. Regarding co-owner’s insurance, generally each home insurance policy contains one or more deductibles for various amounts according with the nature of the loss.

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). However, in recent years, there has been an increase in the amount of insurance premiums for most syndicates of co-owners. Two main factors are at issue: the general ageing of this stock of collective dwellings and the increase in claims caused by the failure to carry out maintenancework  on the building.  But the complexity of the insurance system also has its share of responsibility.

The additional premium is a premium that is added to the existing premium. It results from a worsening of the risk or from the assumption of a new risk. This additional premium may be imposed during the course of a contract or upon its renewal. Risks are analyzed according to scales that are specific to each insurer. Ultimately, the syndicate will pay this additional premium, which will be charged to all of the co-owners through the common expenses (condo fees) or, at times, some of them.

Renting your apartment to tourists, exposes you to various claims. This could be the case in cases where it is recognized that you are legally responsible for a guest who injures themselves or has their personal belongings damaged or stolen during their stay in your apatement. While some short-term residential rental websites offer insurance for this, it is still essential to inform both your home insurer and your syndicate's insurer that you are engaged in such an activity. Remember that the insured must declare to his insurer any circumstance resulting from his actions that aggravates the risks stipulated in the insurance policy. This will avoid horror stories during a disaster.  

The syndicate's insurance does not cover everything, for example, deductibles and exclusions . This is the case for certain types of risk, such as ground movements. This means that not everything that is earthquake and its consequences are automatically covered. To get better coverage, you can subscribe complementary riders to the insurance policy. Clearly, the so-called complementary insurance is intended to increase - by increasing the basic premium - the insurance cover and the ceiling of the indemnities that can be paid. Here are some examples of complementary and optional coverage (guarantee):  

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.