New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 83

83 Owners corporation to insure building

(1) The owners corporation for a strata scheme for the whole of a building must insure the building and keep the building insured under a damage policy with an approved insurer in accordance with this section.

(2) The building is to be insured for at least the value of the building indicated by the last valuation obtained for the building in accordance with this Division.

(3) The damage policy is to be in the name of the owners corporation.

(4) This section does not apply to an owners corporation for a strata scheme comprising 2 lots if:

(a) the owners corporation so determines by unanimous resolution, and

(b) the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and

(c) no building or part of a building in the strata scheme is situated outside those lots.

(5) An owners corporation that breaches subsection (1) is guilty of an offence.

Maximum penalty (subsection (5)): 5 penalty units.