Non-Occupant Co-Owner Insurance (ACNO) in Quebec

When you own a condo in a divided co-ownership property that you cannot occupy at all times (rented out, used as a pied-à-terre or vacant between leases), your risk is not the same as that of an occupant. Non-occupant co-owner insurance (ACNO) helps bridge the gap between the syndicate’s insurance and the reality of a rented or unoccupied condo in Quebec. When properly understood and selected, it protects your finances, your unit and your civil liability, while facilitating claims management with the board of directors (board) and the syndicate’s insurer.

In this guide, we explain what ACNO covers, how it interacts with the syndicate’s policy, and how the deductible and costs are allocated following a claim. You will also find practical tips for shopping for coverage and useful legal references.

What is ACNO and who is it for?

ACNO is a policy designed for a co-owner who does not live in their unit as their principal residence. It is intended for you in particular if:

• you rent your condo to a third party (residential lease);
• you hold the unit as a pied-à-terre used occasionally;
• your unit is temporarily vacant (during renovations or while changing tenants).

Its purpose is to cover your personal civil liability, improvements to the private portions (for example, finishes that are better than the original), certain belongings you own that have been left in the condo and, depending on the policy, your share of damage to common portions not covered by the syndicate’s insurance (for example, a portion of the deductible). It differs from the syndicate’s insurance, which covers the building and common portions, and from tenant insurance, which covers the tenant’s belongings and liability.

Please note: several declarations of co-ownership and by-laws of the immovable require a non-occupant co-owner to carry ACNO and the tenant to provide proof of tenant insurance. Always check your declaration of co-ownership and the board’s decisions recorded in the minutes.

What ACNO covers — and what it does not cover

Every policy may differ. Read your terms, endorsements and exclusions. Generally speaking, ACNO may include:

• Civil liability of the non-occupant co-owner (damage caused to others);
• Improvements to the private portions (beyond the original condition specified in the declaration of co-ownership or the register of the immovable);
• Certain belongings owned by the co-owner that have been left in the unit (for example, appliances belonging to the owner);
• Additional costs to restore the property, depending on the policy and limits;
• The co-owner’s share of damage to common portions not covered by the syndicate’s policy, where permitted by law and provided for in the contract (for example, an allocated portion of the deductible).

What ACNO generally does not cover:

• The tenant’s belongings (which are covered by tenant insurance);
• Damage arising from undeclared or commercial activities if they are not insured;
• Normal wear and tear, latent defects or lack of maintenance;
• Non-compliant work performed by unlicensed contractors or work that contravenes the by-laws of the immovable.

Quick comparison of coverage

Management tip: require the tenant to provide valid proof of tenant insurance and an undertaking to maintain coverage for the entire term of the lease. Keep it in the file and renew it at each term.

ACNO, the syndicate’s insurance and the declaration of co-ownership: how they work together

The Civil Code of Quebec provides that the syndicate must insure the building against usual risks, including the common portions and, depending on the declaration of co-ownership and the original condition, certain elements of the private portions (see section 1073 C.C.Q.). In the event of a claim, the syndicate’s insurer handles the building portion according to the policy in force and the applicable deductible.

Following recent reforms to the co-ownership insurance regime, the law governs how certain deductibles or costs may be allocated, particularly when the source of damage is connected to a unit (see section 1074.2 C.C.Q.). The specific terms depend on the declaration of co-ownership, the rules adopted by the board of directors and the evidence of the facts. Depending on the policy, ACNO may cover all or part of the amounts legally claimed from the co-owner.

A good practice: when buying or renting your condo, ask the syndicate for a summary of the syndicate’s insurance policy, a list of deductibles and the “original condition” of the finishes. This will help you set the appropriate ACNO limits and endorsements. The board of directors may adopt policies regarding deductible allocation requests and communicate them at the annual general meeting; monitor the minutes.

Useful resources:

• LégisQuébec — Civil Code of Quebec (syndicate and insurance, see sections 1073 and 1074.2 C.C.Q.).
• RGCQ — good co-ownership insurance practices.
• OACIQ — guidelines for understanding co-ownership.

Deductibles, claims and cost allocation in the event of a claim

Water damage or a minor fire may involve three policies: the syndicate’s policy, your ACNO and, if there is a tenant, the tenant’s policy. Here is a simplified outline:

1. Mitigation and notice: secure the premises, take emergency measures and promptly notify the syndicate and your insurer. Keep a log of communications and expenses.
2. Determining the damage: the syndicate’s insurer assesses damage to the building and common portions; your insurers (ACNO/tenant) assess the rest (improvements, belongings and liability).
3. Syndicate deductible: the deductible applies according to the syndicate’s policy. In certain cases, the syndicate may claim the deductible from the co-owner concerned, depending on the law, the declaration of co-ownership and internal policies. Your ACNO may include an endorsement to contribute to it, subject to the applicable conditions.
4. Final allocation: the uncovered portion is allocated according to the Civil Code of Quebec, the declaration of co-ownership and the board’s decisions. Good communication between insurers speeds up restoration and limits disputes.

Practical tips from a management perspective:

• Keep your evidence: photos, invoices, email exchanges and expert reports. They will be useful during the adjustment process.
• Have the work performed by contractors holding a Regie du batiment du Quebec (RBQ) licence; keep the certificates. This reduces the risk of an indemnity being denied and promotes compliance with the by-laws of the immovable.
• Ensure consistency with the maintenance logbook (EUC) and the board’s instructions for repairs affecting common portions.

How much to budget and how to shop for ACNO

ACNO premiums vary according to several factors: location (Montreal, South Shore), year of construction, materials and systems (plumbing and electrical), the building’s claims history, the amount of the syndicate’s deductibles, the value of improvements and the selected liability limits. The presence of a tenant or pets, as well as recent renovations, may also affect the risk assessment.

Good purchasing practices:

• Ask your syndicate for the current list of deductibles and the original condition of the finishes;
• Adjust your “improvements to private portions” coverage to reflect what goes beyond the original condition (countertops, flooring and shower);
• Confirm whether an endorsement covering the allocation of the syndicate’s deductible is available;
• Consider a “loss of rental income” endorsement if your rental income is essential to your budget;
• Compare at least two quotes, paying attention to exclusions and civil liability amounts (for example, $2M vs. $1M).

Budget tip: if your condo is rented, certain insurance premiums related to earning rental income may qualify as expenses for tax purposes. Check your situation with Revenu Québec and your professional adviser.

To structure your building’s overall financial management (budgets, calls for contributions and financial statements), visit our Services — Financial Management page. Sound governance also helps maintain a good claims history, which is often reflected in the syndicate’s and ACNO premiums.

Good practices for syndicates and boards of directors

• Clarify in the declaration of co-ownership and the by-laws of the immovable the insurance obligations of the non-occupant co-owner and tenant;
• Document a claims management protocol (notification, access to the premises and approved contractors), adopt it at the annual general meeting and publish it in accessible minutes;
• Keep the register of the immovable up to date, including the original condition, insurance and deductibles; align this information with the maintenance logbook (EUC);
• Raise co-owners’ awareness of recurring risks (washing machine leaks and water heaters at the end of their service life) and encourage preventive maintenance;
• Annually confirm proof of tenant insurance and ACNO from non-occupant co-owners.

Reminder: good administrative discipline facilitates indemnity payments, limits disputes and protects the contingency fund by avoiding the use of that fund for insurable work.

FAQ — ACNO for divided co-ownership properties in Quebec

Q1. Is ACNO mandatory in Quebec?

It is not a general legal requirement, but several declarations of co-ownership require it for units not occupied by the co-owner. It is also strongly recommended to cover your improvements and civil liability.

Q2. Who pays the syndicate’s deductible?

This depends on the syndicate’s policy, the facts of the claim and the legal framework (see section 1074.2 C.C.Q.). In certain cases, the syndicate may claim the deductible from the co-owner concerned. A properly selected ACNO policy may include an endorsement to contribute to it.

Q3. Does ACNO cover loss of rental income?

Often, yes, but by way of an endorsement with limits and conditions (indemnity period and covered causes). Confirm this point precisely with your insurer.

Useful resources and references

• LégisQuébec — Civil Code of Quebec (syndicate and co-ownership insurance; see sections 1073 and 1074.2 C.C.Q.).
• Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) — co-ownership resources and good practices.
• OACIQ — Co-ownership in brief (guidelines for transactions and insurance responsibilities).
• Revenu Québec — Rental income — general information on eligible expenses.
• RBQ — Check a contractor’s licence.

Useful internal links

• Services — Financial Management
• The multiRent blog
• About us

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

This article provides general information and is not a substitute for advice from a tax specialist or accountant. Refer to Revenu Québec and the CRA for exact rules.

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