Co-ownership: what insurance for the common areas?

Verified 08 January 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Do you live in a condominium and there is a fire or water damage in the common areas? Compensation for this type of claim is difficult, because the common areas can be covered by several insurance, and the origin of the claim can be located in a private room. This is why the insurers have signed an agreement between themselves to simplify the procedures for the insured. This is the convention IRSI: titleContent.

The common areas of a building can be covered by 3 types of insurance:

Each condominium must be covered by collective insurance, at least as regards the civil liability.

The group insurance of the condominium is used to compensate the victims for the damage that originates in the common areas of the building. For example, it is a matter of accidents caused by elements of the building (e.g. falling of a building, falling of a tile, sliding stairway) or by a person assigned to the service of the building (e.g. caretaker).

The co-owners' union must take out liability insurance on behalf of the co-ownership.

He may, if necessary, enter into the contract without a mandate from the general meeting of the co-owners, but the general meeting may annul or amend its decision.

Each co-owner, whether or not he is an occupant of his dwelling, must also insure it, at least, with the guarantee civil liability.

This insurance is used to cover the co-owner who has taken out the insurance, when a loss arises in his dwelling and has caused damage to the occupants of his dwelling, to neighbors or to the common parts of the building.

Property and casualty insurance is optional insurance that can be purchased by the co-owners' union. This insurance makes it possible to compensate for damage sustained by the common parts of the building that cannot be compensated by the liability insurance of a co-owner.

In the event of damage caused by an event that originated in the common areas of the building, it is the trustee who must make a declaration to the insurance of the condominium.

Co-ownership insurance will only work if the claim is in a common part.

In case of damage caused by an event which originated in a part private of the immovable, it is the co-owner of the dwelling concerned who must make a declaration to his insurance.

Insurance will not work if the claim originated in a common part.

The convention IRSI: titleContent avoids the difficulties associated with the multiplicity of insurers who may be involved in the management of a claim related to the common parts of a building,

The IRSI Convention is an agreement between insurance companies to facilitate the handling and compensation of fire and water damage claims for condominiums.

It provides that only one insurer must be designated to carry out one of the following three tasks:

  • Management of the claim file (handling of the claim, estimation of the damage, carrying out of appraisals, etc.)
  • Search and repair of leaks in the event of damage to water
  • Payment of compensation to victims of the disaster

The Convention also lays down clear rules for the designation of insurers to carry out these tasks.

It shall apply to damage claims for which compensation for damage does not exceed €5,000 excluding taxes.

Warning  

the IRSI Convention shall not apply to claims arising in hotel rooms and guest rooms.

Appointment of an insurer managing the claim file

The agreement provides that in the event of a claim in the common areas of a building, the insurer of the joint ownership is the insurer managing the claim.

Designation of an insurer to check for leakage (if water damage occurs)

The agreement provides that in the event of a disaster involving water in the common areas of a building, the insurer of the condominium must organize the search for leakage.

However, if the origin of the leak is located in a private premises, the insurer of the owner of this premises must bear the cost of the research initiated by the insurer of the building.

Appointment of an insurer responsible for compensation

The IRSI Convention lays down rules for the designation of the insurer responsible for compensation.

The situation varies depending on the value of the dispute.

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Injury of less than €1,600

For damage with a value less than €1,600  excluding taxes, it is the managing insurer that compensates, without recourse against another insurer.

Injury of more than €1,600

For damage between €1,600  and €5,000 excluding taxes, the managing insurer must carry out an assessment on behalf of the other insurers.

It must compensate the victims, but with the possibility of recourse against the other insurers.

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