Body Corporate Insurance is required for a Body Corporate from the moment the Strata Title registers. If the Body Corporate does not have insurance, it means that your lot (unit) is not insured. Even a duplex should have Body Corporate Insurance.
What is Body Corporate Insurance and What Do You Need It For?
Body Corporate Insurance is insurance that covers;
• The common areas of your unit complex like lifts, foyers, pool, fences and garden areas.
• Body Corporate Assets like Plant and Equipment.
• The building(s) in which lots are located.
• Public risk.
If an incident should occur that relates to any of the above, then a claim would be made through the Body Corporate Insurance policy. If you don’t have Body Corporate Insurance you are risking your financial investment. An example of this might be if a natural disaster occurred or a liability incident took place on common property. With no insurance, the Body Corporate may not be able to recover the costs to repair damage or pay out the claimant.
How Much Does Body Corporate Insurance Cost?
The cost of Body Corporate Insurance is determined by a few thing. Some of these are; how many lots are in the Body Corporate, the age of the property, the location of the property and how many previous claims (if any) the Body Corporate has placed. Each Strata Title should be assessed by a qualified insurance broker or insurance company to obtain the correct cover required.
An invoice from the insurance company is then issued to the Body Corporate and paid by the Body Corporate. A portion of the total insurance cost is allocated to each lot owner accordingly and then included in levies payable throughout the year.
Where Do You Buy A Policy From?
It is best to obtain Body Corporate Insurance from an insurance company or an insurance broker that specializes in Body Corporate Insurance. Your Body Corporate Manager would usually organize quotes from these specialists and then pass them on to the Body Corporate Committee for approval. It is up to the Body Corporate whom they choose to insure their Strata Title with not the Strata Manager.
What Does A Policy Not Cover?
Body Corporate insurance only covers fixtures inside your lot and does not cover your contents including items like carpet and curtains. Lot owners are encouraged to obtain their own common contents insurance, public liability insurance and landlords insurance (if tenanted) for the inside of your unit.
