10 April 2018 13:30
Photo : Unsplash | Chris Barbalis
If it is currently provided for in the civil Code of Quebec that the trade unions of condominiums must ensure that civil liability, the bill 150 also brings the obligation for the owners to ensure in the field, has highlighted a conference on the status of insurance in the condominium at the symposium in spring of the Grouping of the managers and owners of Québec (RGCQ).
If it is adopted as it stood, the bill 150 provides that the condominium unit owners, occupants and non-occupants will be required to purchase liability insurance that will cover the portion they own is their private part and classification part of the common parts. The amount of mandatory minimum will be determined by regulation of the government.
«A novel measure,»
«This is a novel measure, in regard to the condominiums, explained Vincent Gaudreau, vice-president and insurance broker at Gaudreau Insurance. There is already this obligation in automobile insurance, but this is the first time that it obliges the owners to ensure civil liability, which is fundamental as a difference. «
Me Yves Joli-Coeur, lawyer emeritus of the law firm de Grandpré Joli-Cœur , and founder of the RGCQ, has clarified, however, that most declarations of condominium contain insurance obligations, referring expressly to the co-owners.
All directors should be covered
In addition to the co-owners, bill 150 provides that the managers involved with the union of condominiums must also ensure civil liability. Unions must thus cover the third, or all of the members of the board of directors, the officers of the assembly and the manager. Mr. Gaudreau emphasized that it is possible to do so by adding them on the policy of the union, usually at a cost of zero. Similarly, the obligation is often included in the declarations of condominium.
«When I see contracts of insurance without liability insurance coverage for directors, I tell my clients that there is a lack of pages in their police, and their notes that the broker or the insurance agent with whom they have done business has breached its duty of council «, said to Me Joli-Coeur.
In addition, and particularly for the managers, Mr. Gaudreau recalled that a third-party liability coverage does not cover errors and omissions. «It must not be forgotten that the police civil liability does not cover the errors. Then, in the case where we appeal to a manager for the condominium, it is necessary to ensure that our police or his insurance policy covers errors and omissions. «
Coverage depending on the risks
Mr. Gaudreau has suggested a coverage amount of at least two million dollars. By contrast, the increase in the number of common areas, such as pools or rooms, of practice, changes the requirements and increases the risk that the police will need to reflect.
«At that time, the unions should review the amount of the coverage for civil liability and possibly increase to two, five or even ten million dollars. It is necessary that the amount of insurance consistent with the risks. «
«Administrators who are not covered by the police union are very often unaware that they are at risk of incurring personal liability, so their personal wealth is in danger,» added Mr. Gaudreau.