Quebec Condo Construction Insurance: TRC and Liability

Work in a divided co-ownership raises particular insurance issues. Before opening a wall, replacing a riser or renovating a unit, the syndicate and board of directors (board) must confirm the “construction site” coverage. Two types of protection come up frequently: TRC (builder’s risk) and liability insurance. This article reviews the essentials, based on the obligations under the Civil Code of Quebec and sound management practices. (Information current as of 2026-06-08.)

In practice, good preparation reduces losses, prevents disputes between the parties (syndicate, contractor, co-owner) and protects common expenses. Also see how to incorporate these requirements into the contract, the board’s minutes and, where necessary, the agenda for the annual general meeting.

Work in a divided co-ownership: why construction insurance?

In a divided co-ownership, work may affect common portions, private portions or restricted-use common portions. A breakage occurring during the work can affect several units and cost the syndicate a great deal. The Civil Code of Quebec (C.C.Q.) requires the syndicate to insure the building against usual risks and “major losses” (see sections 1073 and 1074.2 C.C.Q., LégisQuébec). This does not eliminate the need for insurance specific to the construction site.

Two main types of coverage must be distinguished:

• TRC (builder’s risk), also known as “all risks construction,” which protects the work in progress, materials and, subject to conditions, certain existing property.
• Commercial general liability (CGL) insurance for the contractor, as well as the syndicate’s liability insurance, covering bodily injury and property damage caused to third parties.

When the requirements are not specified before the contract is awarded, the syndicate risks paying deductibles, uninsured repairs or facing complex cross-claims. This is why it is important to establish the project requirements from the call for tenders and monitor the insurance certificates.

TRC vs. liability insurance at a glance

TRC (builder’s risk): scope, exclusions and duration

TRC coverage is intended to restore the construction site itself. Depending on the policy, it covers the work under construction, materials stored on site and sometimes materials in transit. For a project affecting a roof, a supply riser or common-portion plumbing, this policy limits costly work stoppages.

Key points to require or verify:

• Named insureds: the syndicate (and, where applicable, the condominium manager) named as “additional insureds.”
• “Existing property” endorsement: covers common portions already in place if they are damaged by the work.
• Perils: fire, water, vandalism and theft; check the exclusions for seepage, freezing or backup.
• Insured value: corresponds to the total contract cost, including relevant professional fees.
• Duration: from the actual start of the work until substantial completion or provisional acceptance, depending on the policy.

Watch for frequent exclusions: pure faulty workmanship, design defect, wear and tear and latent defect. Some policies nevertheless reinstate the “resulting damage” from faulty workmanship (for example, repairing damage caused by a defective part, but not replacing the part itself). Read the wording carefully.

For major construction sites (facades, garages and membranes), many syndicates prefer to purchase the “wrap-up” TRC themselves, so they can control the coverage and deductibles rather than depend on the contractor. This approach involves issuing a call for insurance tenders and closely coordinating with the syndicate’s insurer.

Useful references:

• Civil Code of Quebec, insurance for a building held in divided co-ownership (see section 1073 C.C.Q., LégisQuébec)
• Concepts of “major loss” and deductibles (see section 1074.2 C.C.Q., LégisQuébec)

Contractor and syndicate liability insurance: complementary roles

The contractor’s commercial general liability (CGL) insurance covers bodily injury and property damage caused to others during the work—for example, water damage affecting a neighbouring unit or a visitor injured in the work area. This liability insurance generally does not cover the contractor’s own work; that is the role of TRC.

Good practices for the contractor’s liability insurance:

• Require a policy limit sufficient for the scale of the project (often from $2M to $5M, depending on the risk and the advice of the syndicate’s broker).
• Name the syndicate (and, where necessary, the condominium manager) as an additional insured.
• Key clauses: “waiver of subrogation” in favour of the syndicate, “primary and non-contributory” coverage and “severability of interests” (cross-liability).
• Proof of a valid RBQ licence and demonstrated experience with work in an occupied divided co-ownership.

The syndicate also has its own liability insurance for its activities and the common portions. It remains relevant if a third party alleges fault by the syndicate (for example, inadequate signage at a common entrance). However, it is not intended to replace the contractor’s liability insurance.

Who must pay, decide and document? Board, syndicate and co-owners

• Work on common portions: the board manages the file, generally funded by the contingency fund, special assessments or the current budget, depending on the nature of the work. The decision follows the declaration of co-ownership and, where required, approval at the annual general meeting. The insurance requirements (TRC/liability) must appear in the call for tenders and the contract.
• Work in a private portion: a co-owner carrying out renovations must obtain the syndicate’s authorization if the work affects the structure, common plumbing or building envelope. The board may require a contractor’s liability certificate, TRC for the project and a security deposit. These conditions protect the other co-owners and the common portions.
• Allocation of deductibles and recharging of costs: if damage is caused by the negligence of the contractor or co-owner, recharging the cost may be considered, subject to proof and the rules in the declaration of co-ownership. Avoid having these costs absorbed by common expenses when external liability can be demonstrated.

Remember to document the following in the board’s minutes: decisions, certificates received, insurance amounts, deductibles and monitoring procedures. In the event of a dispute, this file demonstrates the syndicate’s diligence.

Practical requirements: certificates, limits, endorsements and monitoring

Here is a checklist to incorporate into your calls for tenders and contracts:

1. Valid TRC insurance certificate covering the entire period of the work, with the syndicate named as an additional insured and an “existing property” endorsement where necessary.
2. The contractor’s liability insurance certificate with adequate limits, “primary and non-contributory” clauses and a waiver of subrogation in favour of the syndicate and condominium manager.
3. Deductible(s) known in advance and accepted by the board; specify in writing who will assume the deductibles in the event of a claim.
4. Appropriate RBQ licence for the work subcategory and CNESST certificate (workforce). Check the claims history and references for work in an occupied divided co-ownership.
5. A water and dust control plan, access, schedules, elevator management and notices to occupants. Attach these requirements to the contract.
6. A procedure for accepting the work and correcting deficiencies, with photos and reports, to activate the warranties.

Managing an incident during the work

• Immediate mitigation: shut off the water/electricity according to the procedure and secure the premises.
• Notice: notify the syndicate’s insurer without delay, followed by the contractor and its insurer. Comply with the reporting clauses.
• Record and evidence: photos, witnesses, precise location (common or private portions) and the numbers of affected units.
• Follow-up: arrange drying/selective demolition if required, in coordination with the insurers. Keep a log and update the board’s minutes.

References and resources

• Civil Code of Quebec — section 1073 (insurance for a building held in divided co-ownership) — LégisQuébec
• Civil Code of Quebec — section 1074.2 (deductibles and major losses) — LégisQuébec
• RBQ — Choosing a licensed contractor
• RGCQ — Best practices in condominium management

To structure these processes (calls for tenders, monitoring certificates and coordinating stakeholders), see our operations management services. MultiRent serves the Greater Montreal area; learn who we are and also browse our blog for more practical guides.

Quick FAQ

• Is the syndicate’s liability insurance enough for a construction site? No. It covers the syndicate’s activities, not the contractor’s own work. Require the contractor’s liability insurance and, depending on the project, TRC.
• For renovations in a unit, who must purchase TRC? Often, the contractor hired by the co-owner. The syndicate may require it if the risk affects common portions (risers, slab or structure). Check your by-laws and declaration of co-ownership.
• Who pays the deductible for water damage caused by the work? It depends on the fault and the policies involved: TRC may repair the work, while the contractor’s liability insurance compensates third parties. The syndicate may recharge a deductible if liability is established, subject to the declaration of co-ownership and legal advice.

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

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