Earthquake Insurance for Condominiums in Quebec

An earthquake remains rare in Quebec, but its effects can be serious for a syndicate. Earthquake insurance is not always included by default in a policy for a divided co-ownership building. The board of directors (board) must therefore assess the risk, premium and deductible, then inform the co-owners. Updated as of 2026-06-17.

In this article, we explain what this coverage protects, the legal references to consider and how to budget these costs in your condo fees. You will also find practical ideas for communication at the annual general meeting and in your minutes.

Why consider earthquake insurance for your condo

• An earthquake can damage the structure, façades, underground parking and other common portions. Without specific coverage, the syndicate will have to finance repairs through special assessments.
• Many insurers’ “common risks” policies exclude earthquakes unless an endorsement is added. You must therefore expressly confirm that this coverage is included.
• Greater Montreal is located in a zone with moderate seismic activity. Seismic design requirements exist under the Building Code. Consult RBQ – Structures in Seismic Zones to understand the applicable regulatory framework.

In short, seismic coverage reduces the risk of a financial shock for the syndicate and stabilizes common expenses over the long term.

What earthquake insurance does—and does not—cover

“Earthquake” coverage is added to the syndicate’s building insurance policy. It primarily covers physical damage to the insured building, including the common portions and, depending on the terms, certain elements of the private portions that must be covered by the syndicate’s policy under the declaration of co-ownership and the Civil Code of Quebec.

Confirm the following with your broker or insurer:

• Scope of covered damage: structure, building envelope, mechanical systems, elevators, parking and common spaces.
• Improvements to private portions: the declaration of co-ownership and the by-laws of the immovable often specify what falls under the syndicate’s insurance versus the co-owner’s insurance.
• “Related events” period—shocks and aftershocks occurring within the same time window—and its effect on the deductible.
• Common exclusions: ground subsidence not caused by an earthquake, landslides and flooding resulting from a tsunami. These risks may require separate endorsements.
• Additional expenses: professional fees (engineering), debris removal, compliance work, emergency fees and temporary relocation of occupants of common portions, if provided for.

For co-owners, a personal “condo” policy remains essential for contents, improvements to the unit and, depending on the by-laws, any portion of the deductible that may be charged to them.

Legal obligations of the syndicate and the board’s role

The Civil Code of Quebec requires the syndicate to insure the building against so-called usual risks (see LégisQuébec – C.C.Q., s. 1073). Earthquake is generally not considered a usual risk; it falls under a specific endorsement. The board must therefore conduct a risk analysis and document its decision.

In the event of a loss and a deductible, allocation may be governed by legislation and your by-laws. The Civil Code of Quebec deals in particular with the allocation of the deductible and the management of syndicate claims (see LégisQuébec – C.C.Q., s. 1074.1). These principles should be paraphrased and applied to your situation with the assistance of a professional.

Good practices for the board:

• Review the declaration of co-ownership and the by-laws of the immovable to clarify whether a portion of the deductible may be charged to co-owners, where permitted, and the voting procedures required.
• Record the analysis, decision and budgetary impacts in the board minutes and then in the annual general meeting minutes.
• Prepare a resolution to approve the insurance quote and the selected deductible.

For more information on practical co-ownership issues, the Regroupement des gestionnaires et copropriétaires du Québec publishes useful guides on insurance and losses.

Assessing the need and cost: 5 practical steps

1. Build a risk profile for the building
   Gather your maintenance logbook study and maintenance logbook. These documents describe the condition of critical components and help identify vulnerabilities.
   List recent structural work, building-envelope materials and essential systems.

2. Update the reconstruction cost
   If necessary, commission a replacement-cost assessment from a chartered appraiser. Many syndicates renew this assessment periodically to avoid underinsurance.
   Adjust the insured amount accordingly. This figure is also used to calculate the deductible when it is a percentage of the insured value.

3. Obtain comparable quotes
   Ask the broker for earthquake endorsement scenarios with different deductibles (e.g., 2%, 5% or a fixed amount) and coverage levels.
   Require clear wording on exclusions, the related-events period and the additional expenses covered.

4. Choose a sustainable deductible
   Assess the syndicate’s ability to pay the deductible without disrupting common expenses.
   Several syndicates establish a self-insurance fund separate from the contingency fund to cover deductibles and small losses. This mechanism helps avoid an immediate special assessment.

5. Budget and communicate
   Include the premium in the annual budget and explain changes in condo fees.
   At the annual general meeting, present a brief summary: premium cost, deductible, main scenarios and impacts. Obtain approval for any necessary adjustments and attach the summary to the notice of meeting.
   Publish everything in the annual general meeting minutes and keep the supporting documents (quotes, insurance certificate) in the syndicate’s records.

Need help with budget planning and tracking premiums and losses? See our financial management services and our blog for more practical resources.

Cost allocation and information for co-owners

• Common expenses and budget: the annual premium is funded through the regular assessments approved at the annual general meeting. Changes must be explained transparently.
• Deductible and special assessments: if an earthquake occurs, the deductible may require a special assessment. The allocation rules, where applicable, should be set out in the by-laws of the immovable and be consistent with the declaration of co-ownership.
• Ongoing communication: inform co-owners about insurance updates, prevention measures and individual responsibilities. Remind everyone that they should maintain co-owner insurance covering contents, improvements and civil liability.

To structure your communications, provide a simple checklist and add an “Insurance” section to your by-laws. For example, one divided co-ownership under our management adopted a standardized notice template summarizing the deductible, endorsements and steps to take after a loss. This approach clarifies expectations and speeds up decision-making when every hour counts.

FAQ – Earthquake insurance and co-ownership

Q1. Is a syndicate required to purchase an “earthquake” endorsement?
The Civil Code of Quebec requires the building to be insured against usual risks (s. 1073). Earthquake is usually a separate endorsement. The decision rests with the board, informed by the building’s risks and the premium cost. Document the analysis and inform the co-owners.

Q2. How do you choose the right deductible?
Compare several scenarios and simulate collecting the deductible: ability to pay, effect on common expenses and the existence of a self-insurance fund. Also check whether the deductible is a percentage of the insured value or a fixed amount.

Q3. Who pays if the damage mainly affects a private portion?
The syndicate’s policy covers the building under the declaration of co-ownership and the Civil Code of Quebec. The co-owner must have their own policy for improvements, belongings and, depending on the by-laws, any deductible portion that may be charged to them. Confirm your rules and communicate them clearly.

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

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