Let’s Understand Body Corporate Insurance

ERNST-Body Corporate Insurance Solution

According to BCCM (Body Corporate and Community Management) Act 1997 and BCCM Regulation 2008; the corporate body must insure:

(i) common property and its own assets,
(ii) building in which lots are located.

But here it is important to know what is considered to be a part of building and what is not.

Temporary walls, floors, AC units of a lot, internal window and door coverings, electrical or gas appliances are not considered as a part of building. And, these are not included in insurance plan. The lot is a part of the building and hence covered in insurances plan, but lot owner’s contents are not covered in this insurance.  For this, the owner can go for strata insurance services.

According these laws damage includes: earthquake, explosion, lightning storm, fire, water damage, glass breakage, damage form impact and riot.  

Body Corporate Insurance covers :

Building Insurance : It does not include land value, but architectural fees and removal of debris is included. The value is determined by a property valuation at least every 5 years to determine the replacement value of the property.

Legal Liability : $10 million is prescribed minimum in case of legal liability for damage or loss incurred on common property.

There are many insurances companies like ERNST Body Corporate Management providing corporate body insurance services.  All you have to do is to find a good one for you.