Definition : Earthquake

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.

 WHAT YOU SHOULD KNOW! The minimum contribution of the co-owners to the self-insurance fund does not have to take into account the deductibles for earthquakes and floods, if these protections are part of the insurance contract.

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The syndicates of co-ownership must set up a self-Insurance Fund to anticipate and finance, in particular, the expenses relating to the carrying out of future work following a loss. This fund is mandatory since 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.  
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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):  
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