Flooding in co-ownership

Sewer backups are normally covered by the syndicate's insurance policy, with a deductible for water damage.

• To prevent backflow, even if it doesn't always happen, it's important to have a non-return valve.
• Blind spot: The sewer backup sub-limit is often a blind spot, because it's a limit that's often insufficient. People underestimate the value of property that may be damaged by backflow, and not all building coverage may apply to backflow. It's important not to underestimate the value of property that may be damaged by backflow, and to keep a close eye on the amounts to make sure they're sufficient to make a claim in this case.

• This refers to the overflow of a natural body of water, often caused by ice jams after heavy rain or snowmelt. Flooding can also be caused by backflow. To find out more, consult the Condolegal glossary (in french).

Scenario: The pumping station in our second basement was unable to push the water to the city system. We have about six vehicles that are total losses. Is it the individual auto insurance or the condo insurance that covers it?

Answer: It will be the individual insurance of the owners of the vehicles that will cover the claim. People really have to open a claim with their auto insurer. Usually, maybe to mention because we've seen it there have been several vehicles that have been flooded, a vehicle that is flooded up to about half of the doors, it's a total loss.

Scenario: Flooded vehicles are in a parking lot and are interfering with cleanup. The owner of a vehicle cannot be reached or does not want to pack his vehicle because he cannot reach his insurer. The vehicle prevents waste management and disposal.

Answer: The vehicle is like furniture that ends up in the common areas. It does not matter whether the owner is there and aware of it, whether he wants to move it or not, it can be moved. Even if it means having the syndicate pay for the towing and then claiming it from the co-owner, who can claim it from his insurer.

Scenario: When the water damage is less than the deductible, and we do not intend to make a claim to the insurance company, the Insurance Bureau of Canada (IBC) indicates that some insurance companies still consider the declaration as a loss that can affect the file while others simply note it. What to do in this case?

Answer: To start, take the time to manage the damage on your side. Once the time is right, notify your insurer. Tell them that you had a little water, but that you do not have a claim, that you are below the deductible. The insurer can theoretically take this into consideration when renewing. However, since it is a $0 claim, the impact on the policy may be very minimal.

Reminder of the syndicate's obligation with respect to insurance: The principle of insurance is a principle that is quite easy to understand. You have a legal entity, which is an insurer, who agrees to insure you. And he, under these conditions, wants to know if the property he is insuring has been impacted by any loss. That is why the Civil Code states that you must declare a loss that calls into question the guarantee, even if it is below the deductible, so that the insurer can possibly make a decision whether to continue to insure or increase the deductible. In a case like the one that happened, it is an exceptional situation. We are not in a situation of a small water damage, a pipe that gives way almost every week, or which will really stress an insurer by saying perhaps that the small pipe, one day, will be the big pipe and I will have a gigantic claim on my shoulders. We are in a phenomenon that is obviously related to climate change and which is not related to negligence or poor construction, negligence of the insurance or poor construction of the building. We are truly facing a situation that is out of the ordinary.

Scenario: We have a $25,000 deductible for a flood claim, but in our warranty extensions, there is a waiver of the deductible in the event of a major claim. Does this mean that we would not have to pay a deductible in this situation? Due to a high call volume, I cannot reach my insurer to ask them this question.

Answer: All scenarios are different, but it is possible that beyond a certain amount of damage, the deductible is waived.

Reminder: As mentioned at the top of this page, we recommend that you consult the definition of "flooding" given by the Condolegal condominium glossary.

Scenario: The roof has leaked and caused damage to the ceilings and walls, is this considered an infiltration?

Answer: Anything that is a poorly sealed window or a roof drain that is not working properly is covered by the insurance policies of the condominium syndicates, it is simply the water damage deductible that applies.

Scenario: If no post-disaster company is immediately available, can we hire a general contractor or a plumber, for example, to evacuate the water and open the walls. Could the insurance companies hold this against us?

Answer: Our obligation after suffering a disaster is to minimize losses. No matter who you hire to respond to the disaster immediately, it is important to minimize your losses. For everything that involves removing the water and drying out, you have an obligation to minimize your losses while waiting for the insurer to intervene. However, make sure to keep all your invoices. It is nevertheless important not to start any renovation work, only have the minimum done before the insurer has been able to take charge of the file and make the necessary checks.

Scenario: Can we think that we will eventually be faced with a choice: finance our self-insurance fund to also cover repairs following a water disaster or suffer the loss of insurability or a large increase in the insurance premium.

Answer: The law provides that the self-insurance fund must have a minimum, in terms of accumulated amounts, which is based on the highest deductible, which excludes floods and earthquakes in particular. That is to say that when we establish the self-insurance fund and we have a deductible where floods are $250,000, we do not have to take it into account, just like the earthquake. That is the first element, but nothing limits the construction of a self-insurance fund.

So, obviously, if we have too many claims, the self-insurance fund will melt like snow in the sun. But the objective that was put forward by the legislator is to build a reserve to, precisely, allow the unions to start work fairly quickly.

In the situation that recently occurred in Quebec, with floods resulting in tens of thousands of claims at the same time, most insurers cannot respond to everyone at the same time, hence the importance of having a specialized insurance broker who is able to provide a service and who can help us navigate such a situation.

Deciding what we can do as an insured when we suffer a flood in a single-family home, such as dismantling floors or walls and we have no response from our insurer, is a relatively easier decision to make than for a condominium, where the presence of common areas and other elements of questions make the decision more complex to make. This complexity highlights the importance for a co-ownership, probably more than for an individual, to have a specialized insurance broker who can support us in decision-making after a disaster.

However, it is important to remember that it is the co-owners' union that must be the project manager of the rehabilitation work, and not the co-owners individually. The funds to finance this work will be drawn from the self-insurance fund.

Scenario: Can a condominium association carry out post-disaster work itself?

Answer: Legally speaking, a association must act retroactively with a contractor. A condominium association manages other people's property. It cannot be its own contractor. This is a delicate matter, but in principle, co-owners should never undertake work. Never. Because, first, they do not necessarily have the skills. There are electrical outlets and associated risks. The condominium association cannot afford to expose its co-owners to such risks. Second, when you have homes that have been impacted by water, fungal spores will develop, which presents health risks and we cannot let people stay in their homes and run the risk of putting the health of the co-owners at risk. The health and safety of the co-owners must take precedence.

Moreover, it should be noted that it is not the condominium insurance that will pay the relocation costs, it is the insurance of the co-owners. Hence the importance for co-owners to have quality insurance on relocation costs following a disaster.

Scenario: Water entered a common area for private use and damaged the unit below. The co-owner is responsible for the maintenance of this common area for private use, who pays for the repairs in this situation?

Answer: Regardless of where the water entered, if damage was caused to the common areas that belong to the syndicate, the damage must be covered by the syndicate and the repairs must be made by the syndicate through its insurer. The origin of the water has no impact on who must make the repairs to the affected areas.

Scenario: What if I am unable to join my condominium association or the members of my association's board of directors?

Answer: If you are unable to join your association, or if the association or board, for any reason, refuses to make the claim, as a co-owner, you have the right to make a claim on the condominium association's insurance. You are considered an insured on this policy and should have a copy of the insurance policy.