Article 1071.1
(Comes into force on June 13th, 2022 at the latest)
The syndicate establishes a self-insurance fund which is liquid and available on short notice. The syndicate is the owner of the fund.
The self-insurance fund is to be used to pay the deductibles provided for by the insurance taken out by the syndicate.
It is also to be used to make reparation for injury caused to property in which the syndicate has an insurable interest, where the contingency fund or an insurance indemnity cannot provide for such reparation.
The self-insurance fund is established on the basis of those deductibles and a reasonable additional amount to provide for the other payments for which the fund is to be used.
Article 2 of the Regulation (effective April 15, 2022)
The minimum contribution of the co-owners of an immovable held in divided co-ownership to the self-insurance fund establish under article 1071.1 of the Civil Code is determined on a yearly basis when the sums to be paid into the contingency fund are determined, in the following manner:
1° where the capitalization of the self-insurance fund is less than or equal to half of the highest deductible amount of the insurance taken out by the syndicate of co-owners, the contribution is equal to half of that deductible;
2° where the capitalization of the fund is greater than half of the higher deductible amount of the insurance taken out by the syndicate, the contribution is equal to the amount resulting from the difference between that deductible and the capitalization of the fund; and
3° where the capitalization of the fund is greater than or equal to the highest deductible amount of the insurance taken out by the syndicate, no contribution is required.
For the purpose of the first paragraph, the deductible applicable to damage caused by an earthquake or by flooding, if that protection is provided for on the insurance contract, is not taken into account.