Requirements for cover for residential flat buildings
62ZU Requirements for cover for residential flat buildings
The minimum amount of cover for which an alternative indemnity contract must provide in relation to relevant residential flat building work is—
if the amount obtained by dividing the contract price (inclusive of GST) by the number of dwellings in the building does not exceed $20,000—
in the case of a construction period alternative indemnity contract—$340,000, or
in the case of a warranty period alternative indemnity contract—$340,000, or
in the case of any other alternative indemnity contract—$340,000, or
if the amount obtained by dividing the contract price (inclusive of GST) by the number of dwellings in the building exceeds $20,000—provide for cover of no less than $340,000 in relation to each dwelling in the building—
in the case of a construction period alternative indemnity contract—$340,000 in relation to each dwelling to which the alternative indemnity cover relates, or
in the case of a warranty period alternative indemnity contract—$340,000 in relation to each dwelling to which the alternative indemnity cover relates, or
in the case of any other alternative indemnity contract—$340,000.
In this clause—
dwelling, in relation to a strata, community scheme or company title home unit, includes any garage or storage area that is included in the same title as the unit.
relevant residential flat building work means the following work in relation to an existing single building containing 2 or more dwellings where the contract price (inclusive of GST) exceeds $20,000—
work on the common property of the existing single residential flat building (where the building comprises strata, community scheme or company title home units),
work on an existing single residential flat building if the whole building is owned by the same person.
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