INSURANCE OF A SECTIONAL SCHEME

Management Rule 29 tasks the Trustees with the duty of arranging adequate insurance for the building.

The insurance premium forms part of the annual estimate of expenditure (the budget) and as such is included in the annual levies.  Therefore an owner is not required to take out his or her own insurance on the buildings.

An owner cannot claim a refund from the Body Corporate for a premium paid or for that matter deduct their premium from the levy and utility account.

It must be noted that the Body Corporate’s insurance covers the buildings and not moveables.

Therefore if you were to turn your unit upside down everything that falls down is not covered by the Body Corporate’s insurance.

 If you should need to make an insurance claim for damage, here are the following guidelines: