What does the owners corporation insure?

An owners corporation must take out an insurance policy for all buildings on common property.

The insurance must cover all costs necessary to replace, repair or rebuild the property back to a condition that is substantially the same, but not better or more extensive than its condition when new. It must also cover for all expenses reasonably incurred for the removal of debris and the engagement of persons necessary to the replacement, repairing or rebuilding of the property (e.g. architects and engineers). This also includes any shared services (water, gas, electricity etc.) that are shared with another person.

An owners corporation must also take out public liability insurance to cover any bodily injury, death or illness, or any damage or loss to property which is sustained as a result of an occurrence happening in connection with common property.

The owners corporation is also able to take out further policies in relation to any land affected by the owners corporation or relating to an owners corporations performance of its duties and functions (e.g. fidelity and office bearers insurance).