Insufficient insurance

Syndicate’s insurer

The syndicate must repair damage caused to property in which it has an insurable interest (articles 1039 and 1074.1 of the C.C.Q.). To cover the cost of the repairs, it can:

• Withdraw the money from its self-insurance fund (article 1071.1 of the C.C.Q.);
• Apportion the amount of the insufficiency among all of the co-owners as a common expense based on their share (article 1074.2 of the C.C.Q.);

And if there is a responsible party

• Claim the responsible party for the total amount of its damages (co-owner or the third party).

Co-owner’s insurer

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 amount of the insufficiency, 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 insufficiency.
• If the peril is covered by the policy, the co-owner’s insurer will pay 100% of the apportionment, up to the insurance amount under Extensions of Coverage – Loss Assessment. The share of the syndicate’s deductible will be subtracted. 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.