Quebec condo self-insurance fund: deductibles, calculation, and water damage

The self-insurance fund belongs to the syndicate and must remain liquid. It pays the collective policy's deductibles and certain uninsured losses. Its minimum annual contribution depends on current capitalization and the highest deductible, excluding earthquake and flood deductibles. The insurance premium is not the deductible and does not determine the fund target.

What is the condo self-insurance fund for?

Article 1071.1 of the Civil Code of Québec requires the syndicate to maintain a liquid fund available on short notice. It first pays deductibles under the syndicate's insurance. It may also cover certain damage to property in which the syndicate has an insurable interest when neither insurance proceeds nor the reserve fund can cover it.

How is the minimum annual contribution calculated?

Quebec's divided co-ownership insurance regulation uses the highest deductible under the syndicate's policies, excluding earthquake and flood deductibles. The calculation is performed annually when reserve-fund deposits are determined.

Which controls belong in the budget and post-claim process?

At every renewal, obtain the complete policy, endorsements, and a deductible schedule by peril from the insurer or broker. Record every deductible change, especially for water leakage and overflow, then recalculate the contribution using the fund's actual bank balance.