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