Condo Insurance Claim: Who Pays? Practical Guide

A claim in a divided co-ownership always raises the same question: who pays what between the syndicate’s insurance and the co-owner’s insurance? Between common portions, private portions, the deductible and improvements, the answer depends on the Civil Code of Quebec (C.c.Q.), the declaration of co-ownership (DCV) and the specific facts. Updated as of 2026-05-10, here is a practical guide to help you find your way.

Are you a member of a board of directors or a co-owner? The steps below will help you limit costs, speed up indemnification and reduce disputes. multiRent — condominium management in Montreal — supports syndicates in the greater Montreal area (including the South Shore) in these situations.

Who pays what after a claim in a divided co-ownership?

As a general rule, the syndicate’s insurance covers the building (common portions and private portions in their original condition), while the co-owner’s insurance covers their movable property, improvements and civil liability. The actual payment depends on:

• the source of the claim (e.g., riser, private water heater, roof),
• the damage sustained (common portions, private portions, improvements, contents),
• the insurance clauses (deductible, exclusions) and the DCV.

The Civil Code of Quebec requires the syndicate to protect and maintain the building, including through adequate insurance; each co-owner must, for their part, insure their property and civil liability. Recourse between the parties (the syndicate’s claim against the at-fault co-owner, the insurer’s subrogation, allocation of the deductible) depends on proven fault and the provisions of the DCV, subject to the applicable provisions of the Civil Code of Quebec. Consult the provisions on divided co-ownership on LégisQuébec for the up-to-date legal framework:

• Code civil du Québec – divided co-ownership (general reference, C.c.Q.): https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991

Keep this key idea in mind: “who pays” often means “which insurer indemnifies first,” followed by possible adjustments (the deductible, recharging permitted by the DCV, and civil liability recourse where there is fault).

Syndicate insurance vs. co-owner insurance: what each covers

• Syndicate insurance
  • Building: common portions and private portions in their original condition (before improvements). Coverage for usual risks (e.g., water damage, fire), subject to exclusions and the deductible.
  • Costs of restoring common portions and, depending on the policies, “standard” restoration of private portions.
  • Emergency costs to limit damage (opening walls, drying), where required to safeguard the building.
• Co-owner’s insurance (condo insurance)
  • Movable property and contents (furniture, unattached appliances, personal belongings).
  • Improvements to private portions (high-end flooring, upgraded countertops) if added since construction or the original condition.
  • Additional living expenses in the event of temporary unoccupancy (depending on the policy).
  • Civil liability where fault causes damage to another person or to the building.
• Landlord co-owner’s insurance and tenant liability
  • If your unit is rented, require the tenant to have insurance (“tenant insurance”) for their contents and liability. Coordinating claims between the co-owner, their tenant and the syndicate is essential.

A quick example

Water damage starts with a dishwasher in one unit and damages the drain riser (a common portion) as well as the floor of the unit below.

• Common portions: the syndicate’s insurance applies to the riser and the work required to safeguard the building.
• Private portion (original condition): “standard” restoration is usually covered under the syndicate’s policy.
• Improvements and contents: covered under the policy of the affected co-owner.
• If fault is proven (improper installation by the co-owner or the contractor they hired), the at-fault co-owner’s civil liability may be engaged, and the syndicate’s insurer could pursue recourse against the responsible party, depending on the Civil Code of Quebec and the policy.

Deductible, improvements and recharging: three points that make a difference

• Deductible
  • This is the amount that remains payable by the insured before indemnification. In a divided co-ownership, the question is often: who bears the deductible under the syndicate’s policy?
  • The declaration of co-ownership or the by-laws of the immovable may provide for the deductible to be charged to an at-fault co-owner or, in some cases, to the unit from which the claim originated. However, these clauses must comply with the Civil Code of Quebec and case law. Check your by-laws and, if necessary, have them reviewed by a legal professional.
• Improvements (betterments)
  • Improvements made by a co-owner are generally not covered by the syndicate’s policy. They fall under the co-owner’s insurance.
  • The “description of private portions” attached to the declaration of co-ownership helps distinguish the original condition from improvements. Keep it up to date and accessible to the condominium manager and the board of directors.
• Recharging and recourse
  • The syndicate may claim amounts from a co-owner if fault is attributable to them (e.g., failure to maintain a water heater beyond its useful life, despite notice). Proof of notices and maintenance is decisive.
  • Insurers’ subrogated recourse and allocation of the deductible must be assessed on a case-by-case basis (Civil Code of Quebec, insurance policy, declaration of co-ownership). If in doubt, document the matter, consult the insurer and obtain legal advice.

For useful best practices and templates for divided co-ownership, also see the resources of the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ):

• RGCQ – Resources

The first 24-48 hours: operational steps to limit damage

• Secure the premises and stop the source
  • Shut off the water/electricity if necessary. Close the main valve or the unit’s valve. Evacuate if required.
• Hire licensed contractors
  • For any wall openings, drying or plumbing work, favour contractors holding a RBQ licence. This facilitates indemnification and ensures that the work complies with requirements.
  • Check the licence: https://www.rbq.gouv.qc.ca/consommateurs/recherche-dun-licencie.html
• Notify promptly
  • Notify the condominium manager, the board of directors and, according to the internal procedure, the claims adjuster for the syndicate’s insurer without delay. Each affected co-owner should also notify their own insurer.
• Document the incident
  • Dated photos/videos, an incident report and witnesses’ contact information. Record the start time, the interventions and any expenses incurred.
  • Place the event on the agenda of the next annual general meeting and record it in the board of directors’ minutes to maintain an official record.
• Preserve and mitigate
  • Keep damaged items that may be useful for the assessment. Take reasonable temporary measures to prevent the damage from worsening, in coordination with the insurer.
• Communication with occupants
  • Inform affected co-owners of the next steps, the contractors hired and the estimated timelines.

To structure these actions, the maintenance logbook / EUC and your syndicate’s internal procedures are valuable tools. If you want to professionalize these processes (emergency line, contractor network, claims follow-up), explore our operations management and administrative management services.

Preventing claims and disputes: governance and maintenance

• Preventive maintenance
  • Keep the maintenance logbook / EUC up to date, with clear frequencies (e.g., inspections of risers, backwater valves, roofs and drains). Align these tasks with the contingency fund plan.
  • Send reminders to co-owners (e.g., periodic replacement of water heaters). The RGCQ offers best practices on prevention in divided co-ownership: https://rgcq.org/.
• Document governance
  • Review the declaration of co-ownership and the by-laws of the immovable to clarify the allocation of the deductible, emergency access to units and co-owners’ insurance obligations (minimum amounts, annual proof).
  • Archive claims, notices and interventions. A well-maintained file simplifies any future claim and decisions at the annual general meeting.
• Choosing contractors
  • Favour duly licensed RBQ firms for restoration work and emergency measures. RBQ reference: https://www.rbq.gouv.qc.ca/consommateurs/travaux-de-construction/
• Sale of a unit after a claim
  • A co-owner who sells must disclose known claims that have affected their unit. See the OACIQ guidelines on the seller’s declaration: https://www.oaciq.com/fr/articles/la-declaration-du-vendeur.

Are you looking for communication templates, emergency procedures and support for your board of directors? Visit our services page or the blog index for more practical guides.

Frequently asked questions

• Who pays the deductible if water damage comes from a riser (a common portion)?
  Usually, the syndicate’s policy deductible remains payable by the syndicate and therefore through common expenses, unless the declaration of co-ownership clearly allows the deductible to be charged to an at-fault co-owner or to the unit from which the claim originated. Confirm the applicable documents and discuss the matter with the insurer.
• Can the syndicate recharge me for work to common portions caused by my appliance (e.g., washing machine) even though I was not at fault?
  This depends on the clauses of the declaration of co-ownership and the Civil Code of Quebec. Many declarations require proven fault to charge costs to a co-owner. Some provide for the deductible to be charged if the claim originated in the unit, but these clauses must comply with the law and case law. Obtain legal advice if necessary.
• Do I have to disclose a past claim when I sell my condo?
  Yes, disclose all relevant known information about the condition of the unit, including claims and repairs, through the seller’s declaration required by the OACIQ. Reference: https://www.oaciq.com/fr/outils/declaration-du-vendeur.
• Who hires the contractor for repairs in a unit?
  For repairs covered by the syndicate’s policy (“standard” restoration), the syndicate or its insurer usually coordinates the work. Improvements and contents are handled by the co-owner with their insurer. Coordination between insurers avoids duplication.

For an overview of the legal rules, also consult LégisQuébec (Civil Code of Quebec, divided co-ownership): https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991.

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

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