Retirement Villages Act 2016

An operator of a retirement village must—

maintain insurance such that all buildings and building improvements forming

take all reasonable steps to ensure that all buildings and building improvements forming part of the village of which the operator is not an owner are insured to their replacement value.

An operator of a retirement village must be insured against—

liability in tort (which, if an amount is prescribed by the regulations for the purposes of this paragraph, must be for at least that amount);

any other liability—

determined at a meeting of residents by special resolution (where insurance against such liability is reasonable in the circumstances and reasonably able to be obtained from an insurer); or

prescribed by the regulations.

For the purposes of this section the replacement value of buildings and building improvements is the cost of their complete replacement including the cost of any necessary preliminary demolition work, any necessary surveying, architectural or engineering work and any other associated or incidental costs.

The insurance under subsection (1) must be against—

risks of damage caused by events (other than subsidence) declared to be prescribed events in relation to home building insurance under

risks against which insurance is required by the regulations.

Any money which an operator receives under a contract of insurance in relation to damage to buildings or building improvements must, subject to the termination of the retirement village scheme or any contrary order of the Tribunal or a Court, be applied by the operator in reinstating or repairing those buildings or building improvements.