Does your strata plan type affect what your body corporate insurance covers?

Broadly speaking, the regulation module applying to a body corporate (for example, the Standard Module, Accommodation Module or Commercial Module) does not materially change the insurance requirements. The insurance provisions are largely consistent across the different modules.

What has a significant impact on insurance is the type of survey plan the scheme is registered under.

• Building Format Plans (BFP) and Volume Format Plans (VFP): The body corporate must insure the building, which includes the structures of the lots as well as common property. This typically extends to fixtures forming part of the building, such as internal walls, ceilings, kitchen cabinetry, bathrooms and similar built-in improvements.
• Standard Format Plans (SFP): The body corporate must insure common property and also buildings where there are shared structures, such as buildings containing common property or buildings where lots share a common wall. In those circumstances, the body corporate’s insurance extends to the building (including the lots forming part of that building). However, if a building is stand-alone and located entirely within a lot with no shared structural elements, it is generally the responsibility of the lot owner to insure that building.

In relation to what the policy covers, strata insurance is designed to insure the property that the body corporate is required to insure under the Body Corporate and Community Management Act 1997. This may also include property located within individual lots and common property.

The regulation module itself generally does not affect the insurance required, and insurers don’t need to know the module type to offer a quote or cover.

If there is any uncertainty about the insurance requirements for your scheme, it can be helpful to seek advice from a strata insurance broker who can review the specific circumstances of the scheme.