Co-owner civil liability

The legislation requires that all co-owners have civil liability insurance. This covers damage which you may cause to another person or to their personal property.

Coverage amount

The minimum amount you are required to purchase for civil liability insurance depends on the number of units in your building:

• Minimum of $1 million, if your building has 12 units or less;
• Minimum of $2 million, if your building has 13 units or more.

This rule also applies to commercial condo units.

Does your syndicate own several condo buildings?

In this case, to find out how much insurance coverage your need, take into account the number of units in your building*.

EXAMPLE:

Your syndicate manages 30 condo units located in three (3) separate buildings.

The co-owners of building A are required to purchase $2 million in civil liability coverage, while the co-owners of buildings B and C are required to purchase $1 million in coverage.

*Your declaration of co-ownership could include a definition of what is meant by “building”. This could modify the example given here for information purposes.

Is your condo at greater risk?

Your insurer may evaluate your condo to be at greater risk of loss, even if your condo building has 12 units or less.

For example, in the case of a townhouse condo, your insurer will take into account its location and its exposure to risk. Are these buildings very close to one another? Is there a high risk of fire spreading from one building to the other? Your insurer will evaluate all these factors and could then recommend or require a higher civil liability insurance amount.

Other topic that may interest you:

• Condo insurance: 4 things to keep in mind