Law 16 and water damage: is your building losing its value (and its insurance) without you knowing it?

The direct impact on insurance: prevention is now essential

With the recent introduction of the regulations of Law 16, prevention has been strengthened. Insurers no longer consider only claims history, but also the proactive measures taken by syndicates in terms of risk management. For example, a building equipped with water shutoff systems demonstrates a commitment to active prevention, which is viewed favorably when calculating premiums. In some cases, their installation even becomes a mandatory condition for coverage renewal, particularly in high-risk buildings.

The new regulatory framework: transparency and rigor

Beyond insurance, co-ownership syndicates must also comply with new legal obligations. Under recent amendments to the Civil Code of Quebec and the regulation of August 14, 2025, all co-ownership syndicates must comply with three major obligations:

1. Maintenance log (detailed inventory, 25-year repair plan, reviewed annually, and professionally revised every 5 or 10 years depending on the size of the building)
2. Contingency fund study (mandatory every 5 years, with an estimate of future costs and financial recommendations)
3. Syndicate certification to be provided within 15 days upon request, including a complete overview of finances, claims, insurance, past and future work, disputes, etc.

These requirements aim to enhance administrative rigor, improve financial foresight, and increase transparency for co-owners and buyers, failing which they may face sanctions or impact the building's value.

Reputation and property value: a crucial issue

The syndicate's certificate clearly outlines the history of losses over the past five years. This mandatory transparency can quickly tarnish the image of a poorly managed building: a history of water damage or recurring losses risks scaring off buyers, putting off insurers, and ultimately causing the value of the units to plummet. Even a syndicate that has taken no corrective measures after past losses, through the absence of concrete actions to prevent their recurrence, projects an image of negligence. In other words, it is not only the presence of losses that matters, but also the syndicate's demonstrated ability to correct, prevent, and improve its management. Without this proactivity, the building becomes disadvantaged.

Conversely, a co-ownership association with a rigorous maintenance record, a well-stocked contingency fund, and modern preventive technologies, such as smart water shutoff systems, sends a strong signal of good management and foresight. These elements become powerful arguments for strengthening insurers' confidence, attracting buyers, and improving the resale value of co-ownerships.

In this new regulatory environment, reducing claims is no longer an option, but rather an essential strategy. It determines not only the stability of insurance premiums, but also the reputation, attractiveness, and financial sustainability of the entire building.

Groupe Vigilance: a strategic ally

Thanks to its water shutoff system solutions, Groupe Vigilance has established itself as a strategic partner for co-ownership associations seeking to protect their assets while meeting legal requirements. By significantly reducing the risk of water damage, its technology directly contributes to controlling insurance costs and strengthening the confidence of insurers and buyers.

It also supports compliance with the new regulatory framework, providing directors with a concrete tool to demonstrate proactive and transparent management. Choosing Groupe Vigilance means investing in collective safety, preserving property value, and ensuring the financial sustainability of the co-ownership.

Sandrine Brousseau
Security Advisor
Groupe Vigilance
866 522 7911 x1709
23 Chemin de Lavaltrie, Lavaltrie, QC, J5T 2H3
[email protected]

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