July 14, 2017 15:05
Photo : Unsplash
The insurance industry damage has a new consultation to lead from the front. After the act 188 and the rule of the 20 % shareholding that can have an insurer in a brokerage firm, that is that the government is consulting on insurance for condos.
And the industry must respond quickly to the requests of the ministry of Finance of Quebec, as the consultation will end on 11 August next. It is, therefore, to say that the industry has a little less than a month to respond, and this, in the middle of the summer and holidays of the construction. The government had expressed its intentions to consult with industry on this matter during the tabling of the budget.
«This approach stems from the observation that the current rules are not sufficient in relation to the lack of maintenance and protection of a portion of the park estate, in addition to create tension between co-owners when claims arise. This situation could even harm the development of new condominiums in real-estate an important element for the economy of Quebec. The withdrawal of a major insurer in the insurance market of condominiums in Québec in 2015 is symptomatic of the problems present in this sector, » says the government in its opinion sent to the media.
The ministry of Finance indicates that this consultation is a continuation of work already begun by the ministry of Justice of Quebec relating to the revision of the rules relating to the condominium. The Chambre des notaires du Québec had headed a consultation to this effect at the turn of the decade 2010.
The government proposes legislative changes regarding the rules that affect the insurance. They are based on two major principles, namely :
- that the maintenance of the integrity of the building, both in its common areas as in its private parts (before improvements), is the responsibility of the syndicate of co-owners. The risks associated with them must therefore be shared ;
- the rules relating to the insurance of blocks of flats, both before and after a disaster, to be clear.
The government also proposes a number of changes, most pointed to the legislation. Click here to view this document.