Insurance Renewal For Body Corporate – Qld


SSKB helps ensure that your Body Corporate Insurance is up to date

The Queensland Government has announced a review into the state’s property laws including the Body Corporate Community and Management Act 1997 and other community titles legislation including body corporate governance issues.

The review period ends on the 22nd of February.

This follows on the heels of the Owners Corporation changes enacted by the New South Wales parliament at the end of 2015.

SSKB – Strata Managers directors Tim Sheehan and Paul Wood, recognised industry experts have reviewed the discussion paper and make  a number of observations which will be featured here on the SSKB blog.

 

Body Corporate insurance is a very serious matter and its renewal should be a straightforward matter for a committee to approve.

Unfortunately, as the legislation is currently framed, this is not the case. Renewal of the insurance policy may fall into the restricted issues that cannot be decided by the committee or it may exceed the relevant committee spending limit.

Moreover statutory requires a ‘review’ each insurance policy at the AGM. This means, to follow the letter of the law, a body corporate may have their insurance lapse if the renewal date falls prior to the AGM.

It has been suggested that the statutory motion to review insurance should be amended to refer to a motion approving or confirming insurance each year and we endorse this recommendation wholeheartedly.

Insurance renewals should not be a restricted issue for the committee. It is not practical.

The body corporate has elected the committee to carry out the functions of the executive of the body corporate and renewal of insurance clearly falls under that preview subject to spending limits and a committee’s obligation to act responsibly.

To overcome the ambiguity of the statutory motion to review insurance policies, SSKB protects our communities by including wording in the motion that also confirms the insurance renewal.



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