Preventing Condo Losses: An Action Plan

In a divided co-ownership, every loss affects the collective: deductibles, premium increases and disruption. For the board of directors (board), developing a prevention program is no longer optional; it is a responsible management approach. In Quebec, insurers consider the claims history, mitigation measures and quality of maintenance when assessing premiums.

In practical terms, prevention involves a rigorous assessment, targeted actions and flawless documentation. In short, Quebec condo insurance loss prevention must become second nature for your board and your management team. Here is a pragmatic action plan to reduce the frequency and severity of incidents, protect the common portions and private portions, and stabilize your common expenses.

1) The syndicate’s framework and responsibilities in Quebec

The syndicate is required to preserve the building, maintain the common portions and ensure that the use of the private portions complies with the declaration of co-ownership (DCV) and the by-laws. The Civil Code of Quebec governs these responsibilities (see C.C.Q.). Refer to the current Civil Code for the obligations of the syndicate and co-owners:

• LégisQuébec – Civil Code of Quebec: https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991

In Montreal and throughout Quebec, insurers also examine your governance: the quality of the minutes, enforcement of the rules, maintenance logbook/EUC and claims follow-up. The Regie du batiment du Quebec (RBQ) publishes useful resources on building maintenance and safety: https://www.rbq.gouv.qc.ca/

2) Assessing risks: your starting point

Before implementing solutions, prepare an accurate picture of your risks. A well-conducted initial assessment prevents you from scattering your efforts.

• Gather the data: claims from the last 5 to 10 years (type of loss, cost, deductible, root cause), age of components (roof, riser, drains, electrical panels), inspection history and work completed.
• Review the maintenance logbook/EUC and outstanding recommendations. Rank them by priority and impact on losses (water, fire, electrical, structural, infiltration).
• Inspect critical areas: mechanical rooms, roofs, balconies, windows, drain stacks, meter rooms, parking areas, sump pits and pumps.
• Review the DCV and the by-laws of the immovable to confirm responsibility for at-risk elements (e.g., water heaters in private portions, common risers, windows and balconies).
• Check the alert chain: emergency numbers, contractor access, labels for water shut-off valves, evacuation plan and intervention kit (barriers, wet vacuum, fans and dehumidifiers).

Tip: a “risks & measures” summary sheet for each component helps the board track actions and inform the annual general meeting (AGM).

3) Priority prevention measures (by type of risk)

Every building is unique, but certain measures can quickly reduce the frequency and severity of losses.

Water (leaks, backups and breaks)

• Install water leak detectors and automatic shut-off valves in sensitive areas (water heaters, dishwashers and mechanical rooms).
• Set a maximum age for water heaters in private portions based on the manufacturer’s recommendations and require proof of periodic replacement (with notice and follow-up).
• Have backflow prevention valves serviced annually and test sump pumps; clean floor drains and gutters.
• Seal floor and wall penetrations and maintain the seals around bathtubs and showers.
• Implement a water shut-off protocol: clearly visible valve labels, a diagram showing shut-offs by riser, and an annual drill with the caretakers and management.

Fire

• Ensure certified maintenance of the fire alarm system, fire extinguishers, audible alarms and smoke-control systems.
• Keep evacuation routes clear and enforce the prohibition against storage in stairwells and electrical rooms.
• Raise awareness of the risks associated with BBQs, candles and portable heating appliances through seasonal reminders.

Electrical

• Inspect electrical panels, tighten connections as needed, and upgrade protection (GFCI/AFCI circuit breakers according to use).
• Control overloading in the common portions, and plan charging stations with an engineer to prevent improvised connections.

Building envelope and structure

• Check the condition of roofs, flashings, membrane, masonry joints and sealants; correct negative slopes and water-entry points.
• Inspect balconies, guardrails and anchors; a failure can result in property damage and personal injury.

Private portions: raise awareness and set rules

• Send clear reminders about appliance maintenance (dryer filters and braided supply hoses), the prohibition against modifying plumbing or electrical systems without authorization, and the obligation to report a loss immediately.
• Provide for targeted spot inspections (e.g., visual inspection of water heaters) as authorized by the by-laws, with reasonable notice and a procedure that respects co-owners’ rights.

For best practices specific to the co-ownership sector, consult the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ): https://rgcq.org/

4) Governance, policies and documentation that reassure insurers

A good program is reflected in its documentation. What you write and implement directly influences the insurer’s risk assessment.

• Loss management policy: notification deadlines, responsibilities, emergency activation, contractor selection, communication with co-owners, preservation of evidence and invoices.
• By-laws of the immovable: align the maintenance obligations for private portions (e.g., periodic water heater replacement and access for inspection) with the DCV. Also specify the penalties for non-compliance.
• Loss and corrective action register: root cause, costs, recovery time and preventive measures implemented. Track performance indicators (frequency, severity and response time).
• Maintenance logbook/EUC: include prevention tasks (backflow valve testing, sump cleaning, alarm calibration and roof inspections) and keep proof that they were completed.
• Board and AGM minutes: record decisions, maintenance contracts, policy adoption and allocated budgets (contingency fund for major work and operating budget for regular maintenance).

Need methodical support to structure your program? See our operations management services: multiRent – Operations management. For record-keeping and document compliance, also see administrative management.

5) Insurance: how to communicate and optimize without compromising protection

The goal is not simply to “lower the premium,” but to present a better-controlled risk.

• Share your risk profile and action plan at renewal: measures installed, timeline and supporting evidence (photos, reports and maintenance certificates).
• Validate your coverage: buildings, common portions, the syndicate’s civil liability, business interruption and the syndicate’s property. Adjust limits and deductibles based on your risk tolerance and cash flow.
• Clarify the allocation of the deductible and repairs under the DCV and the by-laws; make sure co-owners understand their individual coverage.
• Ask for recommendations: some insurers give greater consideration when a documented prevention program is in place or being implemented.

For the overall legal reference, consult the Civil Code on LégisQuébec (the syndicate’s obligations and insurance): https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991. For potential tax implications (e.g., insurance indemnities and taxes), refer to Revenu Québec: https://www.revenuquebec.ca/.

6) Responding to a loss and continuous improvement

Even with a good program, an incident can occur. The quality of your response limits the severity, costs and duration of the unavailability.

• Emergency response: ensure people’s safety, shut off the water or electricity as needed, protect property, and then document everything (photos, videos and moisture readings).
• Communication: promptly inform affected co-owners, explain the steps to follow (individual insurance and access to the premises), and provide regular updates.
• Qualified contractors: work with contractors holding the required licences; the RBQ is the reference for compliance: https://www.rbq.gouv.qc.ca/.
• Insurer and experts: report the loss within the required deadlines, submit the evidence, and cooperate with the claims adjuster.
• Lessons learned: update the register, identify the root cause and add preventive actions to the maintenance logbook/EUC. Present a report to the board and, if necessary, to the AGM.

For more practical resources, explore the multiRent blog. If you would like to budget for your mitigation measures and maintenance contracts, also see our financial management.

FAQ

How can we convince co-owners to accept inspections in private portions (e.g., water heaters)?

Rely on the DCV and the by-laws of the immovable, which may provide for reasonable inspections for safety and maintenance purposes. Explain the financial impacts of a loss (deductible, premium increase and disruption) and propose a clear schedule with advance notice. Summarize everything in the board minutes and inform the AGM.

Is an increased deductible always a bad choice?

Not necessarily. A higher deductible sometimes reduces the premium, but increases the financial risk in the event of an incident. Decide based on your cash flow, loss history and prevention measures. Assess several scenarios and discuss them with your insurer or broker.

What prevention expenses can be planned through the contingency fund?

The contingency fund is intended for major repairs and the replacement of common portions. Certain measures (e.g., replacing components at the end of their service life) may be included, while others fall under the operating budget. Confirm with your professionals (engineer and CPA) and your EUC. For any tax-related matter, refer to Revenu Québec: https://www.revenuquebec.ca/.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary for your situation.

Do you manage a co-ownership in Quebec? Explore our packages or contact us to assess your needs.