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Does your Condominium Insurance Cover Lost Profits?

Condominium insurance and Brazilian civil liability in telecommunications are two important issues that affect the lives of many people in the country. In this essay, the importance of insurance in the condominium will be discussed, as well as the importance of supplementing lost profits.

Condominium insurance is essential to ensure the protection of property owners, as well as the infrastructure of the building. They cover damage caused by accidents such as fires, floods, falling objects, among others. In addition, insurance can be extended to cover civil liability, which is protection against damage that the condominium may cause to third parties, such as pedestrians or neighboring condominiums.

Taking out insurance is mandatory by law (Art. 1,346 of the Civil Code of 2002), and its absence can have serious financial consequences for the condominium and its tenants. Therefore, it is important that condominiums are aware of the importance of insurance and are responsible for keeping it up to date and active according to their policy.

Another important issue that affects the lives of Brazilians is civil liability in telecommunications. Technology has advanced significantly in recent decades with the evolution of cabling that supports a greater amount of data transmission, as well as the evolution of ERBs (Radio Base Station) with data transmission in 5G technology and neutral networks. And telecommunications are increasingly present in everyday activities. However, with the wide spread of technology, new challenges and risks have also emerged.

Civil liability in telecommunications is the legal obligation to repair damage caused to third parties (Art. 927 of the Civil Code of 2002) by the inappropriate use of technology. This includes cases of damage caused by irregular installation, the use of inadequate cables, such as, for example, the use of cables without flame protection, or cable breakage during passage in the shafts.

One of the most common questions condo unit owners ask about insurance is, "Does the condo insurance policy cover lost earnings?" Lost profits are financial losses that an individual or legal entity may suffer as a result of an unexpected event, such as a fire that destroys a commercial building, for example.

In the case of condominiums, lost profits are particularly relevant for landlords and property managers, as they may face additional expenses if an unforeseen event damages the building and prevents tenants from working there. These costs may include paying out-of-pocket expenses such as replacing damaged components, emergency repairs and lost revenue.

While condominium insurance can cover physical damage and liabilities arising from an unexpected event, it does not always include coverage for lost earnings. This means that condo unit owners should carefully check their building's insurance policies to ensure they have this coverage.

If condo insurance does not cover lost earnings, it is possible to obtain separate coverage for this type of financial loss. This coverage can be offered by the insurance provider itself or by a third party.

In any case, it is important for condo unit owners to carefully evaluate available coverage options to ensure that they are protected from the mix of direct and indirect damages.

In short, both condominium insurance and civil liability in telecommunications are important issues to ensure the safety and protection of condominium members and, more broadly, of Brazilian citizens themselves. It is important that people are aware of their rights and duties in relation to these issues, and that condominiums and telecommunications providers are guarded against any damage that may be caused by imprudence, malpractice or negligence, or even mere eventuality.


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