CCQ, r. 4.1 - Regulation to establish various measures in matters of divided co-ownership insurance

Updated to 1 July 2024

This document has official status.

chapter CCQ, r. 4.1

Regulation to establish various measures in matters of divided co-ownership insurance

Civil Code of Québec

(Civil Code, arts. 1064.1, 1072 and 1073).

Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions

(S.Q. 2018, chapter 23, ss. 637, 640, 641, 652 and 810).

DIVISION I SPECIAL PROVISIONS

O.C. 442-2020, Div. I.

1. The minimum amount of the liability insurance that, under article 1064.1 of the Civil Code, each co-owner of an immovable held in divided co-ownership must take out is $1,000,000 if the immovable has fewer than 13 fractions used or that may be used as dwellings or to operate an enterprise, and $2,000,000 if it has 13 or more fractions.

O.C. 442-2020, s. 1.

2. The minimum contribution of the co-owners of an immovable held in divided co-ownership to the self-insurance fund established under article 1071.1 of the Civil Code is determined on a yearly basis when the sums to be paid into the contingency fund are determined, in the following manner:

(1)  where the capitalization of the self-insurance fund is less than or equal to half of the highest deductible amount of the insurance taken out by the syndicate of co-owners, the contribution is equal to half of that deductible;

(2)  where the capitalization of the fund is greater than half of the highest deductible amount of the insurance taken out by the syndicate, the contribution is equal to the amount resulting from the difference between that deductible and the capitalization of the fund; and

(3)  where the capitalization of the fund is greater than or equal to the highest deductible amount of the insurance taken out by the syndicate, no contribution is required.

For the purposes of the first paragraph, the deductible applicable to damage caused by an earthquake or by flooding, if that protection is provided for on the insurance contract, is not taken into account.

Despite the foregoing, where the minimum contribution of co-owners to the self-insurance fund determined pursuant to subparagraphs 1 and 2 of the first paragraph increases the capitalization of the fund to over $100,000, that contribution may be lowered in order that the capitalization of that fund is at least $100,000.

O.C. 442-2020, s. 2; O.C. 1213-2022, s. 1.

3. Only a member of the Ordre professionnel des évaluateurs agréés du Québec may be entrusted with evaluating the amount of the insurance taken out by the syndicate of co-owners that is required to cover the reconstruction of the immovable held in divided co-ownership in keeping with the requirements of the first paragraph of article 1073 of the Civil Code.

O.C. 442-2020, s. 3.

4. The risks that a property insurance contract taken out by a syndicate of co-owners must cover in accordance with the third paragraph of article 1073 of the Civil Code are the following: theft, fire, lightning, storms, hail, explosions, water leak damage, sewer backup and overflows from appliances connected to water distribution piping within the building, strikes, riots or civil disturbances, the impact of an aircraft or vehicle, and vandalism or malicious acts.

O.C. 442-2020, s. 4.

DIVISION II AMENDING, TRANSITIONAL AND FINAL PROVISIONS

O.C. 442-2020, Div. II.

5. (Amendment integrated into c. 2018C23, r. 1, s. 10.1).

O.C. 442-2020, s. 5.

6. (Omitted in part).

Despite the foregoing, section 1 takes effect on 15 October 2020, sections 3 and 4 take effect on 15 April 2021 and section 2 takes effect on 15 April 2022.

In addition, despite the second paragraph, as regards co-owners having taken out liability insurance in force on 15 October 2020, section 1 applies only as of the expiry of the coverage period for the insurance if that occurs within 12 months following that date. If the coverage period expires after 15 October 2021, section 1 applies as of that later date.

Similarly, as regards syndicates of co-owners having taken out property insurance in force on 15 April 2021, section 4 applies only as of the expiry of the coverage period for the insurance if that occurs within 12 months following that date. If the coverage period expires after 15 April 2022, section 4 applies as of that later date.

O.C. 442-2020, s. 6.

REFERENCES

O.C. 442-2020, 2020 G.O. 2, 874

O.C. 1213-2022, 2022 G.O. 2, 2468