The Chile Financial Market Commission has published for consultation a proposed regulation governing the contracting, renewal and cancellation of fire insurance that condominiums must take out under the new Law on Housing Co-ownership (Law No. 21,442), including rules tied to Article 43 of that law. The proposal is designed to facilitate the use of a condominium-level policy structure, so that co-owners can present the condominium’s policy to loan-granting entities and avoid duplicative premium payments. The package also proposes amendments to General Rule No. 469 on tenders of insurance linked to mortgage loans. These changes would allow co-owners to submit the condominium’s policy to lenders where its coverage is at least equivalent to the insurance offered through the lender’s tender process, and would require compensation for partial damage to a mortgaged unit to be used first to repair the insured property rather than to repay the outstanding mortgage balance for that unit. The consultation materials note that the Law on Housing Co-ownership allows co-owners to submit condominium mortgage insurance in place of individual unit insurance requirements. Comments can be submitted via the CMF’s “Regulations Under Consultation” section until October 27, 2025, and the CMF has also published a regulatory report summarising core elements and impact assessments.

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