Strata Insurance

Please Note: Legislation varies in different states and territories and in other countries. For information pertaining to places outside of NSW, Australia, please contact us or refer to the legislation covering your location.

Buildings

The owners corporation has a duty to cover the building in the strata scheme under a damage policy with an approved insurer. For details of what is included in the definition "building" refer to the policy.

This requirement does not apply for 2 lot schemes where the buildings are detached and no building or part of the building in the strata scheme is situated outside those lots. Also, the 2 owners must decide by unanimous resolution that the owners corporation will not effect insurance.

In the product disclosure statement (PDS) there is a prescribed calculation of the sum insured. The amount is calculated by adding the estimated cost of:

	Replacement of the building
	Removal of debris
	Professional fees, ie architect, engineer, etc.
	Increase during the 18 month period following the date of commencement of the damage policy

Note:
A valuation of the building must be carried out at least once every 5 years and the building insured for that amount. This valuation must be carried out by a qualified valuer or quantity surveyor.

Public Liability

The owners corporation is required to insure against death or injury to a person or damage to property for which the owners corporation could be held responsible. The minimum cover is $10,000,000.

Workers Compensation

Where Workers Compensation legislation requires the owners corporation to take out workers compensation insurance, this must be effected. Specific information should be obtained from either Workcover or an insurance broker.

Voluntary Workers Insurance

The owners corporation is required to insure against any damages it could be held responsible for in the case of a person acting on behalf of the owners corporation on a voluntary basis (not receiving any reward or fee or expecting to receive this).

Misappropriation

The owners corporation has a choice whether to take out insurance against misappropriation of money or property of the owners corporation.

Other Insurances

Owners should carefully consider taking out contents insurance to cover fixtures and fittings, ie stove, wallpaper, curtains in the event of damage by water or fire. Public Liability insurance should also be considered for any occurrence involving their lot which is not covered by owners corporation insurance. The mortgagee of a lot may require the owner to take out specific insurance cover as part of the loan.

For more information or to obtain a quote on this product please contact us.