The main rules of insuring a body coporation
When it comes to insurance the main three rules are:
- The entire property must be insured under one policy in the name of the Body Corporate – this means that individual owners cannot insure their unit themselves.
- The property must be insured for the full replacement value at all times and this will usually mean that insurance valuations are obtained each year to make sure this rule is followed.
- There must be an appointed Secretary of the Body Corporate and the Secretary is responsible for arranging the insurance, obtaining valuations and receiving and paying invoices from the Body Corporate bank account.
What can it cover?
Body corporate insurance can cover the building and all common or shared property, and contents which belong to the owners’ corporation. The type of cover and its cost will depend on the kind of building, where it’s located and the amount of common property you share.
It may include:
- Car parks
- Ceilings
- Common areas
- Floors
- Lifts
- Shared contents, such as lawnmowers and washing machines
- Swimming pool
What isn't covered?
There are exclusions. There is also often a deductible or excess and limits on cover, so check with your Steadfast insurance broker.
Product Disclosure Statement
A Product Disclosure Statement (PDS) is available for body corporate insurance and can be obtained from a Steadfast insurance broker.
You should consider the PDS in deciding whether to acquire, or continue to hold, body corporate insurance.
