Are you a condominium owner? Did you know that since the Alur law of March 24, 2014, the building must be insured at least with regard to civil liability?
Each co-owner also has the obligation to take out civil liability, whether he is the occupying owner or not.
We’ll tell you more about the most interesting formulas to best protect you without breaking the bank.
What are the parts of the co-ownership to be insured
Within the co-ownership there are two types of parties generally defined in the co-ownership regulations.
On the one hand, the common areas.
They are intended for the use of all and which belong to all the co-owners according to a defined share: the entrance hall, the roof, the stairs, the elevator, the corridors, the floors. On the other hand, the private parts.
They belong to a single owner and are reserved for his exclusive use: apartment, terrace, parking space, private box.
Insurance companies offer contracts adapted to the parts of the co-ownership concerned with more or less extensive coverage.
Common areas insurance
Let check out some common areas insurance in this section
The civil liability of the co-ownership may be engaged with regard to third parties and each co-owner in the event of damage caused by the building or elements of the building (the fall of a tile or a broken stair step) or by a person assigned to the service of the condominium (maintenance staff for example).
Attention! Not taking out civil liability insurance exposes the co-owners to very high costs in the event of uncovered claims in the common areas.
It is the syndicate, or trustee, of the co-ownership who is responsible for taking out the insurance.
He can contract it without a mandate from the general meeting of co-owners. However, the latter may decide to modify or cancel its decision.
BUILDING DAMAGE INSURANCE
Co-ownership regulations often require the trustee to take out insurance for damage to the building. The events generally covered by this type of contract are as follows:
- Fire, lightning, explosion, including damage caused by smoke and firefighters;
- Water damage: ruptures, overflows, freezing of interior pipes, infiltration through roofs, accidental leaks, etc.;
- The storm, hail and snow on the roofs;
- Natural disasters (flood, earthquake, avalanche) and acts of terrorism;
- Technological disasters;
- Theft: property damage caused by burglars;
- Glass breakage;
Most often, building damage insurance only covers the common areas, but some contracts include certain private areas. Ask your adviser.
THE IRSI AGREEMENT
The IRSI agreement, formerly called Cidre, is an agreement between insurance companies which aims to simplify the compensation of a co-owner victim of water damage or fire. For it to apply, several clear rules must apply:
- The total damage is less than or equal to €5,000 excluding tax;
- The claim is water damage or fire;
- The claim involves at least two insurance companies that are members of the agreement;
- The origin of the accident comes from a neighboring building.
Each owner, whether or not he occupies his accommodation, must insure him at least in civil liability.
This allows the subscriber to be covered when a claim starts in his private portion and causes damage:
- To neighbors or third parties
- To the occupants of his accommodation
- In the common areas of the building
It should be noted that in the event of damage caused which originates in a private part of the building, it is the co-owner of this property who must make a declaration to his insurance.
THE OCCUPANT OWNER
Generally, the co-owner-occupant takes out multi-risk home insurance which covers his civil liability vis-à-vis the co-ownership, neighbors and third parties, as well as his furniture and personal effects.
This insurance mainly covers:
- Damage to property: real estate and its contents (furniture and personal effects) against fire, lightning, storm, hail, explosion, water damage, theft, natural and technological disasters;
- Personal civil liability;
- The civil liability of the co-owner vis-à-vis the co-ownership, neighbors and third parties.
THE NON-OCCUPIING OWNER
Insurance companies offer a specific contract to lessor co-owners. This is non-occupant owner insurance, in other words “PNO contract”.
It is mainly intended to insure his accommodation temporarily unoccupied by the tenant or to take over in the event of a claim and the tenant is poorly insured.
When signing the lease, the tenant must present a civil liability insurance certificate. This guarantee covers it vis-à-vis the owner, but also neighbors and third parties.
In addition, he is advised to take out multi-risk home insurance to cover his furniture and personal effects.