1. What are we talking about? The building's multi-risk insurance
“Multi-risk building” insurance is the policy that protects the built whole and, above all, its common areas: structure, foundations, load-bearing walls, facades, roofs and terraces, stairwells, halls, lifts, technical rooms. It brings together several classic covers in a single policy — fire and explosion, water damage, glass breakage, the association's civil liability, sometimes storm, natural disasters and electrical damage — whose exact scope depends on the terms taken out.
A useful reminder on the framework: condominium ownership of built properties in Morocco is governed by Law 18-00, amended and supplemented by Law 106-12 (2016), then by Law 30-24 (adopted unanimously on 9 July 2024). The distinction between common areas and private areas that structures the whole of condominium ownership is also the one that governs insurance: you do not insure in the same way what belongs to all and what belongs to each.
2. Who takes out the policy, who pays?
In practice, the building policy is taken out by the condominium association, represented by the syndic, on a decision of the general assembly. The logic is simple: the common areas belong collectively to the co-owners, so they are insured collectively.
- The decision to take out (or change) the policy is made at the general assembly, like the other decisions on managing the building.
- The premium is a common charge, shared among co-owners — generally in proportion to their shares, according to the terms set in the condominium bylaws.
- The follow-up (paying instalments, declaring losses, updating the sum insured) is part of the syndic's duties.
Good practice is not to confuse this premium, which funds protection against risk, with the works fund, which funds programmed maintenance: they are two distinct lines in the condominium budget.
3. What the building policy does — and does not — cover
The most important dividing line to understand is between the building policy (common areas) and each occupant's individual home insurance (private areas).
- Covered by the building policy (subject to the cover taken out): damage to the common areas — structure, facades, roofs, stairwells, lifts, technical rooms — and the civil liability of the association for damage caused to third parties by the common areas.
- Outside the building policy, as a general rule: the interior of private lots (improvements, fittings, furniture), the occupant's civil liability and their belongings. These fall under the individual insurance of the co-owner or tenant.
The exact boundary between the two is not universal: some policies extend cover to certain equipment, others restrict it. The covers, ceilings, deductibles and exclusions fall under your policy — that is the first reflex to have: read the specific conditions and confirm with the insurer what is actually covered.
The right basis: insure the reinstatement, not the market value
The most costly mistake in condominiums is insuring the building on its market value (land included) rather than on its reinstatement cost. A loss does not destroy the land: it remains. What the insurer indemnifies is the reinstatement of the built structure. The correct insurance basis is therefore the as-new value — reinstatement cost of the common areas, land excluded, increased by incidental costs (demolition, clearing, design fees). An undervalued sum insured exposes you to the average clause (règle proportionnelle), which cuts the indemnity even for a partial loss; an overvalued sum makes you pay a premium for nothing. For a condominium building, having this as-new value quantified by an independent appraisal, then revising it periodically, protects the whole association.
4. A common-area loss: the right reflexes
When a loss affects the common areas — water damage through the roof, fire in a technical room, partial collapse, breakage in a hall — the speed and quality of the file determine the indemnity. The useful sequence:
- Secure and limit the aggravation — cut off water or electricity if necessary, mark off, take protective measures. Limiting the damage is often part of the insured's contractual obligations.
- Alert the syndic without delay — the syndic manages the declaration on behalf of the association and coordinates the experts' access.
- Declare the loss to the insurer within the deadlines set in the policy (often short for certain perils). Failure to meet the deadline can affect the indemnity: check the applicable deadline in your conditions.
- Build the evidence — dated photos, description of the damage, reinstatement quotes, and, for significant damage, a bailiff's report with a certain date as well as an independent estimate of the loss.
- Distinguish common and private — a single loss may affect the common areas (building policy) and the interior of lots (individual insurance). Each affected co-owner triggers their own cover for their private part.
After a loss, get an independent estimate from our RICS appraisal service, or ask about our condominium advisory to support your position with the insurer.
5. Quantifying the loss: where the independent appraisal comes in
After a loss, the insurer appoints its own adjuster to assess the damage. That is legitimate — but its figure reflects the insurer's position first. The association has every interest in having, facing it, an independent estimate of the loss to frame the discussion rather than endure it.
A real estate appraisal assignment compliant with RICS (Red Book) standards brings, on the damaged common areas:
- The adversarial survey of the damage — nature, extent, location, photos and records.
- The reinstatement cost documented through the cost approach: areas affected, construction method, works, incidental costs.
- The loss of use where applicable — unavailability of a lift, a room, an access — quantified separately.
- A basis for discussion that is structured and traceable, useful in amicable negotiation with the insurer.
The report is delivered within 5 to 8 days (48-72h express), from MAD 3,500 excl. tax. Important: a private appraisal informs the association's negotiation and decision and helps support its position with third parties; it is not intended to replace a judicial expert appraisal, which falls to the judge when a dispute is brought before the court and the court appoints its own expert.
6. The syndic, the general assembly and preventing insurance disputes
- Keep the sum insured up to date — a sum frozen for years drifts towards under-insurance as construction costs evolve. Having the reinstatement value periodically reviewed is a measure of good management.
- Document the building — plans, common-area areas, equipment, works history. The more precise the file, the faster and more defensible the loss quantification.
- Put structuring choices to a vote at the general assembly — level of cover, deductibles, sum insured — so the decision is collective and traceable in the minutes.
- Articulate with works — a loss may reveal damage that falls under maintenance, not chance. The boundary between what the insurer pays and what falls under works decided by the condominium must be clarified early.
7. Appraisal at subscription, or only at the loss? Our reading
- At subscription (or review): yes, to start from a fair reinstatement sum rather than a figure carried over from an old policy or a misread market value — this is what neutralises over- and under-insurance.
- At the loss: yes, as soon as the damage to the common areas is significant or the insurer's figure looks low, to have an adversarial estimate of the loss.
- For an atypical building (specific architecture, high-end fittings, heavy equipment), where neither a standard flat rate nor the purchase price reflects the true reinstatement cost.
8. FAQ
Who takes out the insurance for a condominium building?
In practice, the condominium association, represented by the syndic, on a decision of the general assembly. The premium is a common charge shared among co-owners, generally in proportion to their shares. The scope of cover depends on the policy — check clauses, ceilings and exclusions with your insurer.
Does the building insurance cover the interior of my apartment?
No, as a general rule. The association's policy covers the common areas. The interior of private lots and the occupant's civil liability fall under an individual home insurance policy, borne by the co-owner or tenant. The exact boundary depends on the clauses: confirm it with your insurer.
What should you do in the event of a loss affecting the common areas?
Secure the premises and limit the aggravation, alert the syndic without delay, declare the loss to the insurer within the policy deadlines, and build an evidence file (dated photos, description, quotes, bailiff's report and independent estimate for significant damage). The syndic manages the declaration; each affected co-owner triggers their own insurance for their private part.
On what value should the building be insured?
On the reinstatement value of the built structure (as-new value, land excluded), not on the market value which includes the land. An undervalued sum insured exposes you to the average clause; an overvalued sum makes you pay a premium on a basis that is never indemnified. Reinstatement value is quantified through the cost approach: floor areas, construction method, incidental costs (demolition, clearing, fees).
What is the purpose of an independent appraisal in a loss?
To quantify the loss in a documented way to support your position with the insurer: nature and extent of the damage, cost of reinstating the common areas, loss of use where applicable. A report compliant with RICS (Red Book) standards gives the association a solid basis facing the insurer's adjuster. It informs the negotiation, without replacing any judicial expert appraisal appointed by the judge. From MAD 3,500 excl. tax, in 5 to 8 days (48-72h express), firm quote within 24h.
A fair sum insured, a well-quantified loss.
RICS-certified experts — estimation of the building's reinstatement value (as-new value, land excluded) at subscription, and independent quantification of the loss after a common-area event. Reports compliant with RICS (Red Book) standards in 5 to 8 days (48-72h express), across Morocco.
Note: Condominium ownership of built properties in Morocco is governed by Law 18-00, amended and supplemented by Law 106-12 then by Law 30-24. The covers, ceilings, deductibles, declaration deadlines and indemnity rules (including any average clause) fall under your policy and the regulations in force: confirm your situation with your insurer, and seek support from a lawyer or a professional syndic for the legal aspects. A private appraisal informs the negotiation and the decision; in the event of a dispute, the expert is appointed by the judge. To quantify the reinstatement value of your building or a loss after a claim, see our real estate appraisal page or the blog.