Condo Insurance for Private Improvements: Article 1074.2

In a divided co-ownership, a loss quickly raises the following question: who pays for what, especially when there are private improvements in the unit? Article 1074.2 of the Civil Code of Quebec sets out how responsibility is shared between the syndicate’s insurance and the co-owner’s insurance. Information current as of 2026-07-14.

This article will help you understand everyone’s roles, identify a “private improvement” and structure your claims process. We also cover the deductible, liability and best practices for your board of directors (board).

What does Article 1074.2 C.C.Q. cover?

In short, Article 1074.2 C.C.Q. governs indemnification when a co-owner’s private portion suffers damage caused by a risk insured under the syndicate’s policy. The central idea, in plain language:

• The syndicate insures the entire building, including the common portions and the private portions in their original condition (building standard).
• Private improvements added by a co-owner are not part of the “standard” insured by the syndicate.
• After a covered loss, the syndicate’s insurer indemnifies up to the original standard; the co-owner’s insurer covers the “betterment” portion above that standard.

You will find the official text on LégisQuébec for Article 1074.2, which we encourage you to read for the precise wording (reference: Civil Code of Quebec, s. 1074.2). For additional context on the deductible and the origin of the loss, also consult Article 1074.1 C.C.Q. (LégisQuébec).

• LégisQuébec – Civil Code of Quebec: Article 1074.2
• LégisQuébec – Civil Code of Quebec: Article 1074.1

Private improvements: how can you identify them?

A private improvement is an addition or higher-grade material installed in a private portion by a co-owner after the unit was initially delivered. Common examples include:

• Exotic-wood flooring replacing standard laminate flooring.
• Quartz countertops replacing the original laminate.
• High-end ceramic tile in a shower instead of the acrylic base provided for in the standard.
• Custom cabinetry, high-end interior doors and special mouldings.

The “original standard” provides the baseline for distinguishing an improvement from a component insured by the syndicate. This standard may be established using the original plans, specifications and construction documents, the declaration of co-ownership (DCV) and, ideally, a building standards policy adopted by the board of directors and appended to the by-laws of the immovable. The co-ownership register should retain these references, with photos where possible.

Governance tip: adopt a procedure for documenting significant renovations (notice to the syndicate, plans, technical data sheets and photos) and file these documents in the register. This will help you make decisions quickly after a loss and limit disputes.

For best-practice guidance, see the resources of the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ): https://rgcq.org/

Who pays for what after a loss?

The usual division when the risk is covered by the syndicate’s policy is as follows:

• Common portions: the syndicate’s insurer indemnifies.
• Private portions (original standard): the syndicate’s insurer indemnifies up to the standard.
• Private improvements: the co-owner’s insurer indemnifies the “betterment” portion above the standard.

In practice, two insurers may be involved for the same unit: the syndicate’s insurer (standard) and the co-owner’s insurer (improvements). It is therefore essential to describe the standard properly and clearly distinguish the materials and finishes concerned.

Scenario 1 — Water damage in a renovated kitchen

A broken water supply line causes a loss in a condo kitchen. The kitchen had been modernized with quartz countertops and an artisan ceramic backsplash.

• The syndicate’s insurer indemnifies the restoration up to the standard components (e.g., laminate countertop and simple backsplash if that was the original standard).
• The co-owner’s insurer indemnifies the difference needed to restore the quartz and high-end backsplash, which are considered improvements.
• The deductible under the syndicate’s policy applies to the syndicate’s claim. Depending on the circumstances surrounding the origin of the loss and the internal rules that comply with the C.C.Q., the syndicate may claim the deductible from the co-owner concerned; refer to s. 1074.1 C.C.Q. and your by-laws for the applicable rules.

Scenario 2 — Fire affecting several units

A fire in the common portions spreads and reaches several condos.

• The original components of all affected units are indemnified under the syndicate’s policy.
• Each co-owner whose unit contains improvements will claim the betterment from their own insurer.
• Work coordination must comply with the building’s rules, the selection of contractors holding the appropriate RBQ licences, and the deadlines set by the insurers.

To check a contractor and their licence: Regie du batiment du Quebec (RBQ): https://www.rbq.gouv.qc.ca/

Deductibles, liability and recourse: beware of the pitfalls

The “deductible” is the amount not covered by the syndicate’s insurer for a loss. It can be substantial. Here are the points to consider:

• Origin of the loss and s. 1074.1 C.C.Q.: under the law, in certain situations, the syndicate may claim from the co-owner of the private portion where the loss originated an amount up to the deductible. Everything depends on the circumstances and the rules in the DCV and the by-laws of the immovable. Consult s. 1074.1 C.C.Q. on LégisQuébec and have your practice reviewed.
• Personal liability (PL): if a co-owner is found at fault, their personal liability coverage may indemnify the syndicate or other co-owners. Encourage every co-owner to maintain a complete, up-to-date insurance policy that includes sufficient personal liability coverage.
• Communication and deadlines: promptly notifying the condominium manager and insurer reduces the risk of a denial or reduction in the indemnity. Keep a complete file (photos, estimates, communications and board minutes) to support the claim.
• Contingency fund: it is not intended to absorb insurable losses. It is intended for major repairs and the replacement of common portions, based on the maintenance logbook study (EUC).

Useful resources:

• LégisQuébec – Civil Code of Quebec
• OACIQ – Useful information when selling (disclosures, losses)

Best practices for your board and co-owners

• Establish and adopt a “building standard”: describe the original materials and finishes. Append it to the by-laws of the immovable, approved at the annual general meeting if necessary.
• Keep the register up to date: plans, specifications, certificates, before-and-after photos and correspondence. File co-owners’ renovation notices and link them to the unit.
• Set renovation requirements: a board approval procedure, requirements for RBQ-licensed contractors and liability insurance.
• Review the policies: review the syndicate’s coverage annually with your broker (building, loss of use of common portions and professional fees), and recommend that co-owners review their own policies (improvements, personal liability and loss of use).
• Prepare for interventions: a list of qualified contractors, communication templates and claim steps. Document decisions in board minutes.
• Training and annual reminder: discuss at the annual general meeting the distinction between the standard and improvements, the deductible and expectations in the event of a loss.

To structure your processes, see our administrative and financial management services:

• multiRent services – Administrative management
• multiRent services – Financial management
• Our blog for more guides

FAQ — Frequently asked questions

Q1. Must the syndicate reimburse the value of private improvements?

A1. No. The syndicate’s policy covers the building at its original standard. The betterment added by a co-owner generally falls under their own insurance. Check the standards policy and the DCV to limit grey areas.

Q2. How can I clearly establish my unit’s original standard?

A2. Gather the original plans and specifications, technical data sheets and photos. The board may adopt a descriptive list by room type and material. Append it to the by-laws of the immovable and keep everything in the co-ownership register.

Q3. Can the syndicate’s deductible be divided among all co-owners?

A3. Some divided co-ownerships have internal rules, but they must comply with the C.C.Q. and case law. Under s. 1074.1 C.C.Q., a claim up to the amount of the deductible may be brought against the co-owner from whose portion the loss originated, depending on the circumstances. Obtain legal advice before changing your practices.

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

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