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Frequently asked questions > Co-ownership/Condominium > Divided co-ownership > What insurances the directors of a syndicate of co-owners must take out?

What insurances the directors of a syndicate of co-owners must take out?

The directors of a syndicate of co-owners have the responsibility to adequately insure the building being the subject of the divided co-ownership. The insurance policy can cover several elements, being:

1) the building and its contents

- In case of disaster, the building will be reconstructed according to the plans and specifications followed during the original construction. Thus, a co-owner who has made leasehold improvements to his unit (eg. a new kitchen or a new bathroom) will have to make sure to cover the replacement cost of such improvements.

- The directors are responsible to see that the amount of insurance coverage corresponds to the reconstruction value of the immovable property.

2) the responsibility of directors

The majority of the directors of the syndicate of co-owners act on a voluntary basis, and, therefore, are not paid; it is thus normal that the responsibility of directors is covered by an insurance.

3) sewer backup

It is necessary to plan in the amount of insurance coverage how much it would cost to repair the basement of the building if a flood occurred.

4) professional fees

It is necessary to plan a sum to pay the cost of professional fees and fees of specialists consulted the hypothesis of a disaster.

5) common expenses

The insurance policy will have to plan the reimbursement of common expenses in case of a disaster and cover the reimbursement of housing costs of the co-owners if they have to be relocated during the reconstruction works.

6) kettle insurance

This insurance covers the breaking of the engines of various equipments, such as elevators, diverse pumps, electric entrances, etc.

7) civil liability insurance

8) property of the syndicate

An insurance could cover the property which belongs to the syndicate.

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