Self-insurance funds in co-ownerships : don't panic!

July 20, 2019 - Quebec co-owners are concerned since the announcement of a draft regulation that will require syndicates of co-owners to create a self-insurance fund. However, it should be noted that contrary to what has been reported by some news sources, once adopted, this regulation will only come into force 24 months later.

Some news sources have emphasized that this fund will further increase the financial burden on co-owners, which is creating a certain amount of panic. But for many observers, this concern is not justified.

An additional insurance policy

"This fund will not be an additional financial burden, but rather an insurance policy, in the event that work must be carried out after a loss in a co-ownership," insists Yves Joli-Coeur, Emeritus lawyer and Secretary General of the RGCQ. For several years now, this organization has been advocating for legislative reform on co-ownership insurance.

It must be understood that this fund will be used to pay the deductible that a syndicate must pay in the event of a loss. For example, if it is $5,000, and the damage costs $12,000, the insurer will only pay $7,000. However, as things stand at present, some syndicates are delaying work to repair the damage because they do not have the financial means to do so. In such a situation, the co-owners concerned are penalized.

The Automobile Insurance Plan

That said, two questions must now be asked: why did the government not include (in its draft regulation) a measure concerning reasonable deductibles, which was part of Bill 141, passed in June 2018? And since fewer and fewer insurers want to cover co-ownerships, should the Quebec government introduce an insurance system like that of automobile insurance? Consideration should be given to this subject.

"This plan would allow all syndicates to be adequately insured," says Yves Joli-Coeur. But for this measure to be valid, several syndicates of co-ownership will have to take charge in order to be administered and managed according to good practice. Many insurers withdrew from the co-ownership market because they were tired of paying for losses that could often have been avoided.


To consult this draft regulation in more detail, click on this hyperlink.

By François G. Cellier for