Water damage in the underground car park, a fall on the service stairs, a crack in the façade that puts passers-by at risk: every claim in a condominium raises a host of questions about which coverages can actually be relied on. Protecting a building means choosing an insurance policy based on technical criteria that cannot be assessed by comparing premiums alone.
Claims history and renewal of the condominium insurance policy
People often assume that the comparison comes down to the annual premium. In practice, an insurer may refuse to renew the policy when it expires based on the amounts it has paid out, even if the condominium was not found liable for the claim. This can make all the difference when comparing offers.
Before requesting quotes, it is worth gathering the claims history for the past three to five years. If a building has reported several water damage claims, some insurers will apply higher deductibles or exclude basement water damage coverage. Other insurers, specialising in condominiums with a significant claims history, may accept the risk in exchange for an adjusted premium.
To get a reliable overview, you can refer to a comparison of condominium insurance policies that sets out each insurer’s renewal and cancellation terms. This factor, rarely highlighted in quotes, nevertheless has a major impact on the stability of coverage over the medium term.
A low-cost policy that can be cancelled after the first claim costs more than a stable policy. This is the first question to ask the broker or insurer before signing anything.
Insured amounts and the building’s actual value: the risk of underinsurance
The insured amounts stated in the policy determine the maximum payout in the event of a major claim. If these amounts have not been updated for several years, the condominium risks receiving only partial compensation after a fire or collapse.
In practical terms, when the property manager takes out comprehensive building insurance, they declare a rebuilding value. This value is used to calculate the premium, as well as the payout. If the building has been renovated (external insulation, a new lift, roof repairs), the original value is no longer relevant.
How to check that the insured amounts are adequate
The property manager can ask the insurer or broker to update the figures based on the construction cost index. Some policies provide for automatic indexation, while others do not. When comparing policies, check the following:
- Whether the policy includes an annual indexation clause for insured amounts, avoiding the need to renegotiate every year.
- How the insurer calculates the rebuilding value (new-for-old value, value less depreciation, or declared value).
- Reporting requirements for major works approved at the general meeting, since failure to report them may result in a proportionate reduction in compensation.
A policy that is competitive when first taken out may no longer be suitable if its coverage does not keep pace with the building’s changing needs. This gap only becomes apparent when a claim occurs, when it is too late to put things right.
Liability coverage and damage to common areas
The Alur Law requires the condominium association to take out at least third-party liability insurance covering damage caused to others in the common areas. This basic coverage does not protect the building itself: it compensates the victim of a roof tile falling on a car, a broken step or a leak from a shared pipe.
Liability insurance alone is not enough to rebuild after a claim. To cover physical damage to common areas (fire, explosion, storm, water damage), you need comprehensive building insurance, often referred to as MRI in quotes.
Compare damage coverage based on the building’s profile
An older building with lead pipes does not face the same risks as a recent development with a communal boiler room. When comparing policies, look at three specific factors:
- The deductibles applied to water damage, the leading cause of claims in condominiums. Some policies apply a deductible for each affected unit, while others apply a single deductible per event.
- Specific exclusions: some policies exclude damage linked to a proven lack of maintenance, which can be an issue in an ageing building.
- How claims are handled between insurers, since each policy sets out its own procedures in addition to those established by industry-wide agreements.
Condominium insurance quotes: compare like-for-like applications
There is no official premium scale for condominium buildings. The price depends on the details provided, the coverage selected, the deductibles chosen and the claims history. Comparing two quotes only makes sense if exactly the same information is sent to each insurer.
The property manager prepares a standard application containing a description of the building (number of units, floor area of the common areas, year of construction, shared facilities), the minutes of the latest general meeting listing approved works, and the claims history. This application is sent unchanged to every insurer or broker approached.
Without identical applications, quotes cannot be compared: an insurer quoting on the basis of incomplete information may offer a misleading price that is revised upwards after the first claim is reported. The accuracy of the initial application is far more important to a reliable comparison than the number of quotes requested.
The final decision rarely comes down to the lowest premium. A condominium insurance policy that combines properly indexed insured amounts, reasonable deductibles for water damage and clear renewal terms protects the building and its owners over the long term. By contrast, an introductory rate may backfire on the condominium association as soon as a significant claim occurs.
