Who Needs it?

All Owners Corporations are legally required to secure reinstatement and replacement insurance for all buildings located on common property. This coverage must also account for incidental costs related to the repair or replacement of damaged common property. Additionally, it must extend to services shared with individuals outside of the Owners Corporation, such as pipes, cables, and systems for gas, electricity, water, or data.

Mandatory Public Liability Insurance: Owners Corporations are also obligated to maintain public liability insurance with a minimum coverage of $10 million for common property. This ensures protection against liabilities arising from accidents or injuries on shared premises.

Exemptions for Two-Lot Subdivisions: While two-lot subdivisions are exempt from these requirements, it is strongly recommended to secure both reinstatement and public liability insurance if buildings exist on the common property. This provides essential protection for shared assets.

Valuation Requirements for Prescribed Owners Corporations: Prescribed Owners Corporations are mandated to obtain a professional valuation of all buildings requiring insurance every five years. This ensures accurate coverage and compliance with legal obligations.

Who is Part of an Owners Corporation: If you own a flat, apartment, or unit, you are likely a member of an Owners Corporation. Previously referred to as a “body corporate,” Owners Corporations came into existence on 31 December 2007, under the Owners Corporations Act 2006. This legislation defines the duties, powers, and responsibilities of Owners Corporations, ensuring effective property management and community living.

Secure Your Property and Peace of Mind: Ensure your Owners Corporation complies with legal insurance requirements to protect shared spaces and minimise risks. Contact StrataGuard today for tailored insurance solutions that meet your property’s unique needs.