The condo corporation’s insurance (mandatory since Bill 141) covers the common areas of the building — structure, roofing, common spaces — as well as the condo corporation’s civil liability. The condo owner’s insurance covers personal belongings inside the unit, improvements made beyond the original state, and personal civil liability. Both are complementary and necessary.

D&O insurance protects the members of the condo corporation’s board of directors against personal lawsuits arising from their management decisions. For example, if a condo owner sues the board for neglecting urgent repairs or mismanaging the contingency fund, legal fees and damages are covered. It is distinct from the condo corporation’s civil liability insurance.

The condo corporation’s insurance covers the common areas: building structure, roof, foundations, windows, hallways, elevators, parking, pool and other shared spaces. Depending on the wording of the declaration of co-ownership, some elements inside the units — embedded plumbing, electrical, original flooring — may also be covered by the condo corporation.

Yes. Major water damage in one unit can damage the common areas and other units. If the claim triggers the condo corporation’s policy, the deductible (sometimes $25,000 or more) can be charged to the responsible condo owner under the declaration of co-ownership. Multiple major claims can also drive up the condo corporation’s premium at renewal.

The deductible is the portion of the claim that the condo corporation — or the responsible condo owner — pays before the insurer steps in. Bill 141 allows the condo corporation to recover the deductible from the condo owner whose unit caused the claim. Deductibles have risen significantly in recent years — from $1,000 to $25,000 or more in some buildings. Your unit insurance must cover the condo corporation’s deductible.

No. The contingency fund is intended exclusively for planned long-term repair and replacement work on the common areas — replacing the roof, elevator, or windows. It should not be used to pay claims, which are the responsibility of insurance. Dipping into the contingency fund to cover claims is a bad practice that can weaken the condo corporation’s finances.

In divided co-ownership, each unit is a separate cadastral lot — each condo owner holds their own title and the condo corporation’s insurance is legally framed. In undivided co-ownership (more common in older duplexes and triplexes), the co-owners hold a percentage of the entire building — a single insurance policy covers the whole building and must be taken out jointly.

Only if the condo corporation has taken out D&O insurance. Without this protection, a volunteer director can be personally sued for their decisions — even those made in good faith. In Quebec, condo corporation directors do not benefit from automatic legal immunity. D&O insurance is strongly recommended for every condo corporation, regardless of size.

If the damage originates from a private unit, the liability insurance of the at-fault condo owner compensates the victims. If the cause is a defective common area, the condo corporation’s policy applies. In ambiguous cases, the respective insurers negotiate between themselves. Your unit policy must include sewer backup and water infiltration coverage, as well as coverage for the condo corporation’s deductible, to avoid costly surprises.

Yes, if the insurance doesn’t cover the full amount of damages — due to a high deductible, underinsurance or an exclusion. The condo corporation can vote a special assessment to cover the shortfall. Bill 141 also requires the declaration of co-ownership to spell out the rules for recovering the deductible. A well-capitalized contingency fund and adequate insurance are the best protection against this scenario.