Before making an offer to purchase, get answers to these questions.

• Is the building well maintained? 
  If not, some insurers may refuse to insure it or may insure it but at a high premium and/or with a high deductible.
• Is there enough money in the co-ownership’s contingency fund?
  If not, you may be asked to pay an additional amount (special assessment) to cover the cost of future repairs. If it’s a new construction, beware of excessively low condo fees!
• Has a self-insurance fund been established?
  This fund is primarily used to cover the deductibles that would be payable under the syndicate’s insurance contract in the event of a loss. The amounts needed for this fund are included in the condo fees collected by the syndicate of co-ownership.
• Has the description of the standard condo unit been entered in the register of the co-ownership?
  The description of the standard unit details the state of the condo unit as it was originally built, i.e., before any improvements were made. If the description is not detailed in the register of the co-ownership, there could be problems when the time comes to settle a claim.
• What about the insurance coverage for the building?
  The insurance must cover the reconstruction cost of the building as determined by a member of the Ordre professionnel des évaluateurs agréés du Québec. Inquire about the deductible, limitations and exclusions. The higher the deductible, the more significant the limitations and the more extensive the exclusions, the greater the likelihood that the co-ownership will need to draw on the contingency and self-insurance funds.

Find out about condo insurance

A condo unit isn’t insured the same way as an apartment or single-family home. Condo owners are required to purchase “condominium unit owner insurance”, which covers not only their property and third person liability but also any improvements that are made to the standard condo unit.