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Insurance of blocks of flats : the ministry of Finance publishes its draft regulation


Andrea Lubeck

19 July 2019 13:30

Photo : Unsplash | Philip de Leon

The proposed regulations as expected from clarify some of the new measures of the civil Code of Quebec in matters of co-ownership was published on 17 July in the Gazette officielle du Québec by the ministry of Finance.

The text contains six regulations oversees the funding and the contribution to the fund of self-insurance, determines the professional order to which the reviewers will be members to evaluate the amount of insurance of the building and draws up a list of risks that should be covered in the condominium association in its police.

The ministry says it wants to receive the feedback from different stakeholders during a period of 45 days, to change or not the present draft regulation.

Capitalisation of the fund of self-insurance

The condominiums will have two years to capitalize the new fund of self-insurance that their union will need to put in place, in parallel to the provident fund. The minimum amount to have is one of the more high-deductible insurance policy, excluding the one for the protection against earthquakes, if applicable.

The first year, the contribution to the fund shall be equivalent to half the amount of the high deductible in their contract. The second year, the contribution shall be equal to the amount resulting from the difference between the high deductible and the capitalization of the fund, for the third year, the fund will be fully funded. This operation should be repeated when the funds are used.

Liability insurance of the owners

The act 141 also indicates that the co-owners must obtain liability insurance. For buildings of less than 13 units, the amount of protection must be at least a million dollars. For buildings with 13 or more units, must be two million dollars.

Inspection of the building for five years

The text of the law also obliges trade unions of condominium to inspect the building every five years to determine the value of reconstruction, which will determine the amount to ensure. Only a member of theOrdre professionnel des évaluateurs agréés du Québec will be able to perform this evaluation.

Risks compulsorily covered

Finally, a property insurance contract subscribed to by the union must cover the following risks : theft, fire, lightning, windstorm, hail, explosion, water flow, the strike, riot or popular movement, the impact of an aircraft or a vehicle, and acts of vandalism or malicious acts.

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