COMMUNITY TITLES ACT 1996 - SECT 103

COMMUNITY TITLES ACT 1996 - SECT 103

103—Insurance of buildings etc by community corporation

        (1)         A community corporation must insure—

            (a)         the buildings and other improvements (if any) on the common property; and

            (b)         in the case of a strata scheme—the building or buildings divided by the strata plan.

Maximum penalty: $15 000.

        (2)         The insurance—

            (a)         must be against risks that a normally prudent person would insure against and risks that are prescribed by regulation; and

            (b)         must be for the full cost of replacing the buildings or improvements with new materials; and

            (c)         must cover incidental costs such as demolition, site clearance and architect's fees.

        (3)         In the event of a claim, any excess or shortfall resulting from under insurance must be met by the corporation.