|The importance of the co-ownership declaration ||The importance of the co-ownership declaration ||http://chad.ca/en/members/professional-practice/industry/condominium/167/the-importance-of-the-co-ownership-declaration|
The popularity of condominiums, or divided co-ownership, has risen dramatically in recent years, as seen from the statistics on annual housing starts. But condominium living has specific requirements, not only in daily life but also in terms of insurance policies and liability actions. In order to properly appreciate this reality, it is essential to have a good grasp of how the condominium is legally structured, which includes reviewing the co-ownership declaration and by-laws.
These two documents define the rights and obligations of the co-owners and identify the portions that are deemed common versus those that are exclusive.
It can be useful to review the declaration when underwriting the risk to make sure that the policy will truly meet the insured’s needs.
When settling a loss it is important that the insurer know the initial condition of the property so it can make a distinction between the damages for which the Syndicate is responsible and those payable under the co-owners’ insurance policies.
It is also necessary to review the co-ownership declaration to identify the potential liability of the various parties in respect of damages to the condominium or to third parties.
In our view, it is essential that anyone considering a request for an insurance proposal or a claim involving a condominium should make sure to review the co-ownership declaration in order to fully understand its scope before deciding what steps to take.
|2/25/2015 9:03:53 PM||http://docs.chad.ca/SiteCollectionDocuments/2012-02-chadpresse-importance-of-co-ownership-declaration-an.pdf|