Even considering an insurance policy is enough to give most people a headache – let alone handling insurance for a multi-storey apartment block. In Victoria, owners corporations are required to insure common property, public risk and every building which contains an owner’s lot (i.e. an apartment or a unit).
The owners corporation building insurance will cover the full replacement value of the building structure including improvements and fixtures. A building is defined as the structure and part of a building or structure (including walls, out-buildings, installations and other things attached to that structure), pipes or cables for shared services, and boats or pontoons permanently moored to the land. The insurance must cover for the replacement, repair and rebuilding of the damaged property. This entails cost of demolition and removal of debris, employment of architects/surveyors and replacement of services such as driveways and fences.
Unit owners are responsible for all items from the interior paint inwards (minus fixtures and improvements as listed above) as your owners corporation will not insure these items:
If an owner has a tenanted unit, it is a good idea to take out a form of landlord’s insurance. This insurance will cover the items owners are responsible for which are not covered by the body corporate’s policy (such as carpets, light fittings, dishwashers, air conditioners), and also usually items such as accidental damage, malicious damage, and loss of rent.
It is encouraged insure contents owned by lot owners or tenants within their unit or for any interest they may have in common property. Items which are typically insured include:
Insurance for owners corporations can vary greatly depending upon the requirements of the property. While SSKB has provided some basic guidelines, we would recommend seeking the advice from professional insurance providers to cater for the needs of your property.