Building insurance in Argentina:
what is mandatory and who pays

Which insurance policies are mandatory for a building association?

Nationwide, the comprehensive building policy with fire and civil liability, plus "other customary risks" and any others the owners' meeting decides (Civil and Commercial Code, art. 2067(h)). In the City and the Province of Buenos Aires the manager must also insure the building against fire and accidents, the association's employees and third parties. And if the association has employees, the ART and the mandatory group life insurance are not optional.

• Nationwide: Comprehensive policy with fire and civil liability: a legal duty of the building manager (Civil and Commercial Code, art. 2067(h), in force since August 1, 2015).
• City of Buenos Aires: Law 941 (as amended by Laws 3,254, 3,291, 5,932 and 5,983), art. 9(c): insure "the building against fire and accidents, the Consortium's employees and third parties". The monthly fee statement must detail each policy (art. 10(f)) and non-compliance is a sanctionable offense (arts. 15 and 16).
• Province of Buenos Aires: Law 14,701, art. 8(c), with the same wording. The manager must be registered in the Public Registry of Building Managers run by the Provincial Directorate of Legal Entities (DPPJ).
• With a caretaker or other employees: ART (Law 24,557, art. 3) and mandatory group life insurance (Decree 1567/74), which covers the death of every employee with a sum insured of 5.5 minimum living and mobile wages, updated every March 1.
• Bylaws and owners' meeting: The manager also has the duties set by the building bylaws and the owners' meeting (art. 2067): if the bylaws require another cover, it is mandatory for that building.

The law does not list glass, theft or water damage: they are included if the bylaws require them, if the owners' meeting decides so, or if they are part of the comprehensive policy taken out.

Does the building insurance cover my apartment?

It does not cover your belongings or damage that starts in your unit. The association's policy protects the building (the common areas and, depending on how it is set up, the construction of the units) and the association's liability towards third parties. It leaves out the contents of your apartment, your own improvements and finishes (non-load-bearing walls, doors, windows, fixtures and coverings, which art. 2043 of the Code treats as private parts) unless the policy includes them, and the damage your unit causes to a neighbor, such as a water leak. That is covered by your own policy, whether you own or rent.

• If you own and live there: A home policy with fire cover for contents and civil liability.
• If you rent: Fire cover for contents and civil liability, with the clause in favor of the owner if the lease requires it.
• If you own and rent out the unit: Ask the tenant for that policy with the clause in your favor, or take out your own cover: the building policy replaces neither.

To find out what your building's policy includes, ask the manager: at the request of any interested party, they must issue within three business days a certificate with the policies in force (art. 2067(l)).

What happens if the building is underinsured?

The insurer applies the average (proportional) rule: if the sum insured is lower than the insurable value, it pays the loss in that same proportion (Insurance Law 17,418, art. 65), unless the policy states otherwise. A building that costs ARS 1,000 million to rebuild and is insured for ARS 600 million collects 60% of every claim: for ARS 100 million of damage it receives ARS 60 million, and the owners pay the other ARS 40 million. That is why the sum must reflect today's cost to rebuild (replacement value), not the sale price of the units or the value of the land.

• By law, a building is indemnified at its value at the time of the loss, unless rebuilding was agreed (art. 87(a)): ask whether the policy includes new-for-old replacement.
• Declare new works (a party room, a pool, an elevator): what is not in the sum insured is not insured.

Is Law 13,512 on horizontal property still in force?

No. Law 13,512 of 1948 was repealed by Law 26,994 (art. 3(a)), which approved the Civil and Commercial Code, and since August 1, 2015 horizontal property is governed by articles 2037 to 2072 of that Code. The old law only required insuring the building against fire (art. 11); the Code extended the duty to a comprehensive policy that also includes civil liability and other customary risks (art. 2067(h)). When a text cites Law 13,512 as current law, the reference is outdated.