FAQ - Insurance
What Is Covered By The Body Corporate Insurance?
This is a very complex question, and you should contact your body corporate manager or the insurance broker to obtain specific advice.
The Body Corporate is always responsible for the public liability (also called legal liability) insurance on the common property. This policy must be for at least $10 million, although it is often for more. Each owner is responsible for public liability insurance inside their own unit and any exclusive use areas. Even if you rent out your unit, you should discuss having this insurance with your insurer or broker.
The Body Corproate’s insurance will also cover any buildings/structures/assets on common property. This includes BBQ structures, pools, driveways, boundary fences, letterboxes etc.
Usually, where there are shared walls between units, the buildings are insured by the Body Corporate. This usually includes the structure (floor, walls, roof), bathroom & kitchen fitout and tiled flooring. It usually does NOT include hot water systems, air conditioners that only service your lot, and carpets.
If your unit is a stand-alone building, you may or may not be covered by the body corporate’s building policy.
This is meant as a VERY GENERAL GUIDE ONLY. We strongly suggest that you contact the body corporate manager directly to discuss your particular insurance. They may then refer to you to the body corporate’s broker, who can answer any specific questions.
It is important to note that the body corporate may be responsible for insuring items that the body corporate is not responsible for maintaining. For example, your kitchen may be covered by body corporate insurance, but it is the owner’s responsibility to maintain, repair and upgrade the kitchen.