Insurance Bureau of Canada welcomes the provisions of Bill 16 regarding the regulation of divided co-ownership

MONTREAL, April 3, 2019 /CNW/ - Insurance Bureau of Canada (IBC) welcomes the provisions of Bill 16, which was tabled today, aimed at improving the management and maintenance of divided co-ownership buildings.

For several years now, the P&C insurance industry has noted a rise in claims as a result of poor construction quality or lack of preventive maintenance for this type of building. 

Like other housing and divided co-ownership stakeholders, IBC had been calling for the reform of legislation governing divided co-ownership for several years now, and welcomes the provisions of the Bill which will ensure adequate maintenance of divided co-ownership buildings.

"We are pleased to see that the government has understood the importance of acting to ensure that divided co-ownership buildings are better managed and to preserve Quebec co-owners' assets. Many condo buildings are in poor condition and threaten the financial security of Quebecers who live in them", noted Pierre Babinsky, Director, Communications and Public Affairs, IBC, Quebec.  

IBC welcomes the new obligations regarding the maintenance log and a reserve fund study, which will ensure buildings will be maintained in good condition in the long term. 

"These new provisions should improve the loss experience we see in divided co-ownership and, consequently, improve access to insurance that is more affordable for certain divided co-ownership syndicates," added Pierre Babinsky.

Inspection and construction quality

While welcoming better regulation of the profession of building inspector, IBC regrets the lack of concrete measures in Bill 16 to improve the initial quality of the construction. P&C insurers in Quebec have noted numerous claims in newer buildings, which suggests that the quality of the construction can have as much of an impact on the number of claims filed as the lack of maintenance. For several years now, IBC has pushed for more complete and frequent inspections of work at different stages of a building's construction.

Given the rapid growth of divided co-ownership in Quebec, IBC believes that better construction quality and maintenance of co-ownership buildings are the key to protecting co-owners' investment and the life of this type of housing. 

About Insurance Bureau of Canada

Insurance Bureau of Canada, which groups the majority of Canada's P&C insurers, offers various services to consumers in order to inform and assist them when purchasing car or home insurance, or making a claim. For more information, please visit www.infoinsurance.ca.

SOURCE Insurance Bureau of Canada