(2) The
person must ensure that when the scheme is established, policies of insurance
that are required for the scheme under the regulation module applying to the
scheme are immediately in force for 12 months.
Penalty—
Maximum
penalty—150 penalty units.
(3) If the regulation module requires a
building to be insured for full replacement value, the original owner—
(a)
must obtain from a quantity surveyor or registered valuer an independent
valuation stating the replacement value of the building; and
(b) must ensure
the policy of insurance for the building, taken out by the original owner as
required under subsection (2) , covers the full replacement value stated in
the independent valuation.
Penalty—
Maximum penalty—150 penalty
units.
(4) If the person does not take out the insurance required under
subsection (2) , the body corporate, or other entity that is required to take
out insurance, may recover the cost of taking out the required insurance as a
debt owing to the body corporate or other entity by the person.
(5) This
section does not prevent the person from recouping the costs of the insurance
for the balance of the period for which it was taken out from the buyers of
lots included in the scheme, by agreement.