The Department of Finance released draft regulations that allow syndicates of co-ownership to limit their contributions to their self-insurance fund to $100,000, although their deductible may be greater than this amount.
The RGCQ welcomes this decision, which responds to a request made from the RGCQ and a need from the syndicates of co-ownership. This contribution cap will particularly help larger condominiums, where deductibles often exceed this amount, as well as several recent condominiums, which are suffering on the market due to their lack of risk assment history.
Setting a $100,000 threshold respects the spirit of the self-insurance fund and does not compromise its effectiveness. Indeed, it is rare that the damages caused by a disaster exceed this amount. When it is the case, $100,000 is enough to take the first steps to stop the damage and carry out emergency repairs.
Note that syndicates can always decide to deposit more than $100,000 in their self-insurance fund, depending on their needs. The entry into force is scheduled for April 15, 2022, at the same time as the other measures related to the self-insurance fund.