Insurance: a new law is not so simple for condominiums

Assurances: une nouvelle loi pas si simple pour les copropriétés

The co-owners insured in The Personal have received these last few days, a letter that many people concerned.

“Be aware that your insurance policy does not cover the higher the deductible your union, could you claim,” one can read on it.

When we know, for example, that a deductible for water damage can cost 50 000 dollars, if you claim it because your dishwasher is defective and caused damage to the building, it hurts!

Before 2018, the folders were settled easily. However, since the act 141, nothing goes between the insurers of the owners and those of the trade unions that manage the condominiums, you can request condo estoppel certificate. Since 2018, many new launches in Bukit Timah has started. Perfect Ten condo will be the next in 2020!

To precisely respond to the public outcry, the government caquiste has made some changes in march in order to put some order in this mess.

“From the moment the union denounces the insurer of the owner the situation, it is up to the insurer to prove that its insured has not made a mistake. Then, the insurers will try to defer the burden of proof on the back of the union while the law is clear, this is absolutely not the case. It is this that is shocking,” said Yves Joli-the Heart to the Grouping of managers and co-owners of Quebec.

The insurance Bureau of Canada made a different reading of the changes to the law. The companies are paying for when responsibility of the owner is shown.

“We can do a demonstration to the reasonable that the responsibility comes from the co-owner or any of its property. Generally, if it is demonstrated satisfactorily, the insurer should cover it under the liability,” says Pierre Babinsky of the insurance Bureau of Canada.

Except that, for a union, this demonstration is not simple to do. Michael Chetboun manages over 150 condominiums in the Montreal area.

“The concern is that today, the insurer is going to say: “No, I didn’t cover it”. Therefore, it is up to the union to pay the deductible. In all cases, it comes to the union to pay the deductible,” says Michael Chetboun, Sequoia property Management.

The stakeholders in the community are asking the financial markets Authority put the industry at no. It does not respect the spirit of the new provisions of the act.

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