The syndicate must insure the entire building (article 1073 of the C.C.Q.), except for improvements (article 1073 of the C.C.Q.). However, the damage might not be covered because there is no insurance or coverage. In such cases, the syndicate is in charge of the repairs and can:
- Withdraw the money from its self-insurance fund (article 1071.1 of the C.C.Q.);
- Apportion the amount for the damage among all of the co-owners as a common expense (article 1074.2 of the C.C.Q.);
And if there is a responsible party
- Claim the responsible party for the total amount of the damage (co-owner or third party).
Regardless of whether or not the co-owner’s unit is damaged, the syndicate can claim from the co-owner his/her share of the damage amount, which is considered a common expense (article 1074.2 of the C.C.Q.):
- The co-owner insurance policies suggested by IBC include coverage for the apportionment in a case of absence of insurance.
- If the peril is covered by the co-owner’s policy, his/her insurer will pay 90% of the apportionment, up to the insurance amount under Extensions of Coverage – Loss Assessment. The co-owner must pay his/her deductible.
And if a co-owner is responsible
- The responsible co-owner has civil liability coverage for the amounts claimed from him/her.
Note: It is very important for co-owners to insure for all perils to which they could be exposed through apportionment. For example, even if they live on an upper floor, they could still be responsible for an apportionment for sewer backup. They should seek advice from their insurance broker or insurer.