Legislation & Compliance

Owners Corporations Act 2006

Insurance is important to protect the Owners Corporation and the interests of the individual lot owners. The law (Owners Corporations Act 2006) sets out the minimum insurance required. The minimum insurance required for an Owners Corporation is:

1. Reinstatement and replacement insurance of buildings on common property

2. Public liability insurance for the common property of not less than $20,000,000. Insurance for common property protects owners in the case of unexpected third-party property damage and injuries

Building Reinstatement and Replacement Insurance

All Owners Corporations must take out reinstatement and replacement insurance for all buildings on the common property. The insurance must cover:

1. The cost necessary to replace, repair or rebuild the property to a condition substantially the same, but not better or more extensive than its condition when new; and

2. The payment of expenses necessarily and reasonably incurred in the removal of debris and the remuneration of architects and other persons whose services are necessary, being incidental to the replacement, repair or rebuilding of the damaged property