New South Wales Consolidated Regulations

STRATA SCHEMES MANAGEMENT REGULATION 2005 - REG 12

12 Manner of calculation of insurance limit under damage policy: section 82 (6)

(1) For the purposes of section 82 (6) of the Act, the manner of calculating the amount to which the liability of an insurer may be limited under a damage policy is to add together the following amounts:

(a) the estimated cost, as at the date of commencement of the damage policy, of the rebuilding of the building or its replacement by a similar building so that every part of the rebuilt building or the replacement building is in a condition no worse or less extensive than that part or its condition when the building was new,

(b) the estimated cost, as at the date of commencement of the damage policy, of removing debris from the parcel in the event of the building’s being destroyed by an occurrence specified in the policy,

(c) the fees (estimated as at the date of commencement of the damage policy) payable to architects and other professional persons employed in the course of the rebuilding or replacement referred to in paragraph (a),

(d) the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 18 months following the date of commencement of the damage policy.

(2) The amounts referred to in subclause (1) (a)-(d) are to be calculated so as to include any applicable taxes, fees and charges (including taxes, fees and charges of the Commonwealth).