Strata Titles Act 1998

The body corporate for a strata scheme must take out and maintain a policy of insurance for the buildings and other improvements (if any) on the site in accordance with this section. Fine not exceeding 50 penalty units.

The policy of insurance – must cover – damage from fire, storm, tempest or explosion; and any other prescribed risks; and costs incidental to the reinstatement or replacement of the buildings, including the cost of removing debris and the fees of architects and other professional advisers; and must provide for the reinstatement of the buildings and improvements to their condition when new.

The body corporate for a community scheme must insure property in accordance with the requirements (if any) of the scheme.

A body corporate may insure against – loss from dishonesty, negligence or other wrongful conduct; or other risks.

Despite any provision of the policy of insurance but subject to subsection (5), the body corporate (and not the owner of a lot) is liable to pay an amount payable, by way of excess, under the policy taken out by the body corporate under this section and any contribution that has to be made to the cost of reinstatement or repair because the insurance is not for the full replacement value of the insured property.

If an amount payable by way of excess under a policy of insurance taken out by the body corporate under this section arises from an event affecting only one lot, the owner of the lot is liable to pay the excess unless the body corporate decides, by ordinary resolution, that it would be unreasonable that he or she alone be required to pay the excess.

If an insurer of the body corporate accepts a claim by the body corporate based on an act or omission by an owner of a lot, the insurer has no right of subrogation in respect of the owner unless it is proved that the act or omission was wilful.

It is a defence to a charge for an offence against subsection (1) if the body corporate can show that, despite the body corporate having taken all reasonable steps available to it to comply with that subsection, no insurer is willing to enter into a policy of insurance, on reasonable terms, that meets the obligations imposed by this section.