What is owners corporation insurance and why is it important?

What is owners corporation insurance and why is it important?

Posted on: 11 March 2020

Owners corporation insurance is important as it protects both the owners corporation and all lot owners. In Victoria all owners corporations must have minimum insurance to reinstate and replace all buildings on common property, as well as public liability insurance for the common property. This protects all owners in the case of unexpected damage or injuries.

Reinstatement and replacement insurance

Reinstatement and replacement insurance must be taken out for all buildings on the common property.

This insurance must cover:

  • replacement, repair and rebuilding of the damaged property
  • costs of demolishing and removing debris from the site
  • other costs such as employing an architect or surveyor
  • shared services
  • replacement of services and structures such as driveways and fences.

Public liability insurance

Public liability insurance covers the common property, and is very important to the Owners Corporation - they must have a minimum cover of $10 million.

It’s important to note that owners corporation insurance does not cover individual lots or their personal contents. It is recommended that individual owners take out their own private insurance which will cover their personal property and contents, including any property which is stored on common property but is personal – such as vehicles and the contents of storage cages.

As all properties vary greatly, the insurance required for each one will be different.

For more information about owners corporation insurance visit this site.

At Melcorp Strata we evaluate your building and provide experienced advice tailored to your building’s needs. If you’d like to know how we can help protect your building and owners corporation give us a call on 03 8638 1822.