Strata Insurance and AGMs for a Small Owners Corporation

The owners are obligated to insure the common property for property damage and public liability. We recommend your OC get an insurance rebuild valuation. This will recommend how much to insure common property for, including the driveway.

The Owners Corporations Act 2006, Part 3, Division 5 Section 59 and 60 outlines the owners corporation's obligations to insure. Section 61A allows owners corporations with multiple single dwellings to resolve each lot owner is responsible to insure their lot. However, that does not negate the obligations under Sections 59 and 60 to maintain property and liability insurance over the common property.

59 Reinstatement and replacement insurance

1. An owners corporation must take out reinstatement and replacement insurance for all buildings on the common property in accordance with this Division.

60 Public liability insurance

1. An owners corporation must take out public liability insurance for the common property in accordance with this section.

61A Insurance for multiple single dwellings on a plan of subdivision

An owners corporation on a plan of subdivision for multiple single dwellings with common property may, by unanimous resolution, resolve that the lot owner of each single dwelling is responsible to insure their lot.

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.