Definition : Insurance - Co-insurance clause

Clause of the insurance contract according to which the insurer institutes a tolerance level in favor of the insured, which will not be penalized in the event that the replacement value of the building is higher than that declared at the time of subscription (under insurance).  It is expressed as a percentage that may vary but is usually 80% or 90%, depending on the guarantees under the insurance policy.

    WARNING! This clause must be distinguished from the proportionnal rule (article 2493 C.c.Q.).

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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 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.  
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