September 29, 2025 - The Financial Market Commission (CMF) published for consultation today a regulatory proposal on fire insurance that condominiums must take out pursuant to the new Law on Housing Co-ownership (Law No. 21,442). This regulation governs fire insurance for condominiums according to Article 43 of the Law.

Additionally, the proposal intends that by taking out insurance including a policy for common property and facilities along with another for individual units, co-owners can present the policy contracted by the condominium to loan-granting entities and avoid incurring into double payments.

Meanwhile, the purpose of amending General Rule No. 469 on tenders of insurance linked to mortgage loans is to incorporate the provision allowing co-owners of a condominium to present the policy contracted by the latter to loan-granting entities if said policy coverage is at least equivalent to that of insurance tendered by the entity. It also introduces a requirement to ensure that compensation payments for partial damage suffered by a unit covered by the policy taken out in a mortgage loan are firstly used to repair the insured property rather than settle the outstanding balance owed to the mortgage lender for that unit.

The Law on Housing Co-ownership also allows mortgage insurance to be submitted by co-owners in the condominium, replacing the requirements of individual units' insurance.

Interested parties can access the Regulations Under Consultation section of the CMF website until October 27, 2025 to review the proposals in detail and submit their comments. The Commission also makes available the corresponding Regulatory Report with their core elements and impact assessments.