Condo Syndicate Insurance in Quebec: Requirements & Coverage

Buying a condo in Blainville, Saint-Jérôme or a ski-in unit near Mont-Tremblant raises a confusing question: if the syndicate already insures the building, what do I need to buy? Quebec’s co-ownership rules were overhauled by a 2018 law (Bill 141), with insurance obligations phased in between 2018 and 2022. The result is a clearer, but more demanding, system for both the syndicate and each co-owner.

This guide explains what the Civil Code of Québec now requires from the syndicate (syndicat de copropriété), what remains your responsibility, and how deductibles and the self-insurance fund work.

Key takeaways

• The syndicate must insure the entire building, including private portions but not co-owner improvements, for its reconstruction cost.
• That amount must be assessed by a chartered appraiser at least every five years.
• The syndicate must also insure its own liability and that of its directors, manager and meeting officers.
• Co-owners must carry civil liability of $1M (fewer than 13 units) or $2M (13 or more).
• Every syndicate must maintain a self-insurance fund to pay deductibles.
• A co-owner at fault can be asked to pay the syndicate’s deductible.

Syndicate of co-owners insurance: what the law requires

Since Bill 141 was adopted on June 13, 2018, the Civil Code and its regulation (CCQ, r. 4.1) set precise obligations for the syndicate. Here they are, as summarized by the AMF, the ChAD and the OACIQ.

1. Property insurance for the whole building, at reconstruction cost

The syndicate has an insurable interest in the entire building, including the private portions. It must insure the building, common portions and common property against the usual risks, with a reasonable deductible, for an amount sufficient to rebuild the building in line with current standards and good practice. This is often loosely called “replacement cost”; the legal benchmark is reconstruction cost. Improvements made by co-owners are excluded from the syndicate’s policy.

2. Appraisal every five years

Since April 15, 2021, the reconstruction cost must be assessed by a member of the Ordre des évaluateurs agréés du Québec at least every five years, whatever the size of the building. The declaration of co-ownership can require more frequent appraisals. An outdated value can leave everyone under-insured after a major fire.

3. Minimum risks covered

Unless expressly excluded, the syndicate’s property policy must cover:

• theft, fire, lightning, storm, hail and explosion;
• leaks and overflows from sanitary facilities and appliances connected to the building’s water pipes;
• strike, riot or civil disturbance;
• impact of an aircraft or vehicle;
• vandalism or malicious acts.

Syndicates with a policy already in force on April 15, 2021 had to comply at expiry, by April 15, 2022 at the latest.

4. Syndicate and directors’ liability

The syndicate must insure its own third-party liability and that of its directors, the manager, the chair and secretary of general meetings, and others responsible for their proper conduct.

5. Working with a professional, reporting losses

According to the AMF, the syndicate must deal with a damage insurance agent or broker in commercial lines and give co-owners a copy of the contract. It must report a loss to its insurer as soon as it becomes aware of it, even if it doesn’t intend to claim, and disclose information that could affect the insurer’s assessment of the risk.

6. Repairs, even without a claim

The syndicate may decide not to claim, for example when the damage is close to the deductible. It must then still ensure the damage is repaired promptly. In that case it cannot sue a co-owner or household member for damage its insurer would have covered, and the costs are shared through common expenses, subject to a claim against a co-owner at fault.

7. Other obligations that affect insurance

• a sufficiently precise description of the private portions (the “unit of reference”) kept in the register (art. 1070 C.C.Q.);
• a maintenance log and a contingency fund study reviewed at least every five years;
• a syndicate certificate provided within 15 days when a co-owner requests it for a sale.

The self-insurance fund and deductibles

Since April 15, 2022, co-owners must contribute to the syndicate’s self-insurance fund (fonds d’autoassurance), a liquid fund available on short notice. It pays the syndicate’s deductibles and covers damage when insurance or the contingency fund is not enough. Contributions are shared according to the relative value of each unit.

Fund balance compared with the highest deductible*	Minimum total contribution for the year
Equal to or above the deductible	None required
Above 50% but below the deductible	The difference between the deductible and the fund
50% or less of the deductible	50% of the deductible

*Earthquake and flood deductibles are excluded from the calculation, according to the AMF and ChAD. The regulation also provides some flexibility once the fund reaches $100,000. A syndicate can always ask for more than the minimum.

Example from the ChAD: with a $100,000 deductible and an empty fund, the minimum contribution is $50,000 a year, so it takes about two years to build up. After the fund pays a deductible, it must be replenished.

Who pays the deductible after water damage?

Normally the syndicate, through the self-insurance fund; deductibles are a common expense. But if a co-owner causes the loss through their fault, including by people or property under their responsibility, the syndicate can claim the deductible and costs above the policy limits from that co-owner. Without fault, it cannot pass those costs on to them. The ChAD also explains that insurers generally cannot use subrogation against the syndicate, co-owners, their household or the people the syndicate must insure, except for bodily or moral injury, intentional fault or gross fault.

Co-ownership insurance for co-owners: what’s mandatory

Since October 15, 2020, every divided co-owner must carry civil liability insurance (existing policies had until renewal, by October 15, 2021 at the latest):

Size of the co-ownership	Minimum co-owner civil liability
Fewer than 13 units (fractions)	$1,000,000
13 units or more	$2,000,000

Insurance for belongings and improvements isn’t required by law, but your declaration of co-ownership or lender may require it. See mandatory insurance in Quebec.

What your own condo policy should cover

Item	Syndicate policy	Your co-owner policy
Structure and common portions	Yes	No (except loss assessment)
Private portion per the unit of reference	Yes	Optional; syndicate’s policy is primary
Your improvements and upgrades	No	Yes, if declared
Furniture and belongings	No	Yes
Your civil liability	No	Yes (mandatory minimum)
Additional living expenses	No	Usually
Your share of a loss assessment	No	Often, within limits

Your policy (assurance copropriétaire) typically covers improvements beyond the unit of reference, such as wooden cabinets replacing melamine or a ceramic shower replacing a moulded one (examples given by the AMF). Note that loss assessment coverage generally applies only if you carry the underlying coverage: no sewer backup coverage, no sewer backup assessment. See water damage and sewer backup insurance in the Laurentides.

Laurentides points to check

• Ski and resort condos (Mont-Tremblant, Saint-Sauveur): short-term rental may be restricted by the declaration and changes your insurance. See short-term rental insurance in Quebec. Renting long term? Read landlord insurance in Quebec.
• Winter water damage: ice dams on flat roofs, frozen garage sprinkler lines and burst pipes can hit several units. Leak detectors with automatic shut-off are increasingly encouraged.
• Riverside projects: near the Rivière du Nord or lakes, ask how flood risk is handled at the building level and in your own policy.

A typical water-damage scenario

1. A washer hose bursts in a third-floor unit; water damages the unit below and a hallway.
2. The syndicate is notified, reports the loss and arranges emergency drying.
3. The syndicate’s insurer repairs common portions and private portions per the unit of reference, minus the deductible.
4. Each co-owner’s insurer handles their belongings, improvements and living expenses.
5. If the upstairs owner was at fault, the syndicate may claim its deductible from them; their liability coverage may respond.

For the claim process, read how to file a home insurance claim in Quebec.

Before buying a condo: insurance checklist

1. The syndicate’s insurance contract: insurer, amount, deductibles (including water damage) and renewal date.
2. The date of the last reconstruction cost appraisal.
3. The self-insurance fund balance versus the highest deductible.
4. The unit of reference for your unit type.
5. Recent claims in the minutes; insurers have become more selective with buildings that have many claims.
6. The declaration’s rules on renovations, rentals and deductibles.
7. The contingency fund study and planned work.

Then compare at least three quotes and check your representative on the AMF registers.

Frequently asked questions

What insurance must a syndicate of co-owners have in Quebec?

Property insurance on the entire building, including private portions but excluding improvements, for its reconstruction cost with a reasonable deductible, plus liability insurance for the syndicate, its directors, the manager and meeting officers.

How often must the building’s insured value be appraised?

At least every five years, by a member of the Ordre des évaluateurs agréés du Québec. The declaration of co-ownership can require more frequent appraisals.

What is the minimum co-owner liability insurance in Quebec?

At least $1,000,000 if the building has fewer than 13 units, and at least $2,000,000 if it has 13 or more. This has applied since October 15, 2020.

Can the syndicate make me pay its deductible?

Only if the damage results from your fault, or that of people or property you’re responsible for. Otherwise, deductibles are paid through the self-insurance fund as a common expense.

What is a self-insurance fund?

A liquid fund every syndicate must maintain to pay its insurance deductibles and certain uninsured repairs. Co-owners have had to contribute since April 15, 2022, based on the relative value of their unit.

Does the syndicate’s insurance cover my condo’s interior?

It covers the private portion as described in the unit of reference. Your improvements, belongings and personal liability require your own co-owner policy.

Have a question we didn’t answer? Contact us.

Sources: AMF: insuring your condo unit and building, ChAD: co-ownership, LégisQuébec: CCQ, r. 4.1, OACIQ: co-ownership insurance, overview of the new rules

This article is for general information only and is not insurance advice. Laurentides Insurance Guide does not sell insurance. Always confirm with a licensed broker or your insurer.