This insurance is easy to take out and protects individual unit owners in multi-owned buildings. It allows owners’ associations to take out loans to fund renovation work and covers the association and its members against default by individual members.
BENEFITS OF THIS INSURANCE
- All individual unit owners are covered without exception, even those who don’t participate in the loan.
- The owners’ association no longer has to pay for or deal with recovery procedures for defaults, so the association’s assets are protected.
- Individual unit owners no longer have to pay the share of defaulting members to the owners’ association. Default by one or more members will no longer negatively impact the association’s collective assets.
What happens if a unit’s ownership is transferred?
- The obligations of an individual unit owner (vendor) to the owners’ association transfer automatically to the new owner.
- When a unit’s ownership is transferred, the new owner will continue to enjoy the same insurance protection.
What happens when an individual unit owner is involved in collective debt settlement procedures?
What happens when the building manager (syndic) changes?
- The rights and obligations of the parties are not affected.
- The contact details of the new building manager are sent to Atradius.