Definition : Self-Insurance Fund - Self-Insurance fund

Amounts of money required from the co-owners by the syndicate of co-owners to build up financial reserves (self-insurance fund) to be used in particular to pay the cost of the rehabilitation work of the building, resulting from a loss, which are not compensated by the insurer. This fund is based on the deductible that the syndicate of co-owners must pay in connection with the co-ownership's insurance coverage and a reasonable additional amount to cover other payments to which it is allocated. The financial contribution of the co-owners must equal to the higher deductible (section 2 of the rule) amongst all the insurance coverage subscribed to by a syndicate. Earthquake and flooding deductibles are excluded for the purpose of this calculation, should those coverage be part of the insurance contract.

Capping the minimum contribution to the self-insurance fund at $100,000 (coming into force)

August 27, 2022 — On June 22, 2022, the Government of Quebec published in the Gazette officielle du Québec a regulation amending the Regulation to establish various measures in matters of divided co-ownership insurance. The by-law amends the terms and conditions for establishing the minimum contribution to the self-insurance fund of an immovable held in divided co-ownership so that a contribution bringing the balance of the fund to more than $100,000 may be reduced. Nevertheless, a syndicate of co-owners may always decide to deposit in the auto insurance fund an amount greater than this amount, and this, according to its financial forecasts.

Capsule vidéo avec Yves Joli-Coeur : Le fonds d'auto assurance

Le fonds d'auto assurance deviendra obligatoire le 15 avril 2022, en vertu de l’adoption du projet de loi 141, en 2018. Dans cette capsule vidéo, l'avocat émérite Yves Joli-Coeur explique les détails.

Can part of the money accumulated in the contingency fund be used to set up a self-insurance fund?

At our last annual co-owner's meeting, the board of directors informed us that it was going to take $10,000 from our contingency fund to set up a self-insurance fund. To justify their decision, the directors said that this will allow to avoid putting up a special assessment. Several co-owners seemed to agree. Question: Can the board unilaterally decide to use part of the sums accumulated in the contingency fund to set up a self-insurance fund without consulting or obtaining the approval of the co-owners? And if so is this a good way to manage the funds of our co-ownership?

Self-Insurance Fund

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.

Capsule vidéo avec Yves Joli-Coeur: Le fonds de prévoyance

Le fonds de prévoyance est le "bas de laine" d'une copropriété. Il sera indispensable lorsque viendra le temps d'engager des travaux majeurs dans l'immeuble, ou qu'il faudra remplacer des parties communes arrivées à échéance.

Definition : Self-Insurance Fund - Self-Insurance fund

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