Fire risk insurance – which under the horizontal property regime is compulsory by law for both autonomous fractions and common parts – must be concluded by the condominium owner, and the condominium administrator should only assume this task when the condominium owners do not. have done so, within the time limit and for the amount that has been set for that purpose in the meeting. When this happens, the administrator will have the right to recover from the owners the respective premium, the amount paid for the insurance contract.
All owners are required to take out fire insurance for their autonomous fraction, because if a fire breaks out within it, the insurance only covers damage to the fraction from which the problem originated. Therefore, the collateral damage that other fractions or common parts may suffer is not covered by the insurance of the fraction that gave rise to the claim.
If there are fractions that do not have this insurance, and if a fire occurs, the affected owners will have to bear the damage suffered. Therein lies the importance of all owners contracting their insurance, and must do so at the correct value, ie the value of reconstruction – this value, as already mentioned, to be approved by the General Assembly.
Fire hazard insurance integrates lightning and explosion hazard covers, covering damage caused by lightning, heat, smoke, steam, and explosions that occur as a result of the fire. This insurance also covers damage to the property as a result of fire fighting, removal of wreckage and salvage operations.
However, owners may opt for multi-risk insurance which, in addition to including fire, lightning and explosion risk cover, will include other negotiated coverage, thus extending the range of situations in which they are protected in the event of sinister.
The reconstruction value is the value required for the reconstruction of the building in case of total loss. In the case of buildings in horizontal property, the total reconstruction value of the building should be calculated, and each owner must insure the value that results from its multiplication by the fraction of its fraction. This will cover not only the fraction but also the corresponding common parts.
In the event of a claim and in the event that the amount of reconstruction has been understated, the insurer may invoke the proportionality rule, paying only part of the damage.