BODY CORPORATE AND COMMUNITY MANAGEMENT (ACCOMMODATION MODULE) REGULATION 2008 No. 270 - SECT 177 177 Insurance of building including lots [SM, s 179]

BODY CORPORATE AND COMMUNITY MANAGEMENT (ACCOMMODATION MODULE) REGULATION 2008 No. 270 - SECT 177

(1) This section applies if 1 or more of the lots included in the community titles scheme are created under a building format plan of subdivision or a volumetric format plan of subdivision.

(2) The body corporate must insure, for full replacement value, each building in which is located a lot included in the scheme, to the extent that the building is scheme land.

(3) A policy of insurance taken out under this section--

(a) must cover--

(i) damage; and

(ii) costs incidental to the reinstatement or replacement of insured buildings, including the cost of taking away debris and the fees of architects and other professional advisers; and

(b) must provide for the reinstatement of property to its condition when new.

(4) If the body corporate can not comply with subsection (3), the commissioner, on application in writing by the body corporate, may authorise the body corporate to put in place an alternative insurance in a form approved by the commissioner if the commissioner is satisfied that the insurance approved gives cover that is as close as practicable to the cover given by insurance under subsection (3).

Example of alternative insurance that might be approved by the commissioner--

insurance giving cover up to an agreed value

(5) The body corporate is liable to pay any contribution that has to be made to the cost of reinstatement or repair because the reinstatement insurance is not for the full replacement value of the insured property.

(6) The body corporate need not insure a building or a part of a building under subsection (2) if--

(a) the scheme is a subsidiary scheme for another community titles scheme (the other scheme); and

(b) under subsection (2) or an equivalent provision of another regulation module, the body corporate for the other scheme is required to insure the building or the part of the building.

(7) Also, the body corporate need not insure a building or a part of a building under subsection (2) if--

(a) the building or the part of the building is scheme land; and

(b) the whole of the building is the subject of a building management statement registered under the Land Title Act 1994; and

(c) the building management statement provides for insurance for the building to a level comparable with insurance otherwise required under this part; and

(d) the insurance is in place.

(8) This section applies subject to provisions of this part about insurance of buildings mutually dependent for support on a common wall.