In this video, Solicitor Rebecca Purcell talks about alternative insurance if bodies corporate are not able to obtain the insurance that they are required to under the strata legislation.
Hello, my name’s Rebecca, and I’m a solicitor here at OMB Solicitors. Today I’m going to be talking about bodies corporate and the alternative insurance that is available if they’re not able to obtain the insurance that they are required to under the Strata legislation.
In accordance with Strata legislation, bodies corporate are required to hold insurance for buildings that form part of their scheme land for full replacement value.
It may be difficult for some bodies corporate to obtain insurance for full replacement value of all of their buildings where they are in locations such as Far Northern Queensland, where severe weather events such as cyclones are common and insurers therefore have increased prices for insurance to be put in place.
Accordingly, the Strata legislation has provided that bodies corporate can make an application to the Commissioner for Body Corporate and Community Management to put in place alternative insurance.
In order for an application for alternative insurance to be made, there are certain requirements that need to be met, such as the fact that the body corporate has taken steps or made attempts to put insurance in place and it is simply too expensive or insurance is not available so that they are not able to put in place the insurance that they need to.
If you’re part of a body corporate who is struggling to put in place appropriate insurance and thinks that an application for alternative insurance may be something that the body corporate needs to explore.
Contact OMB solicitors who can assist in preparing and lodging an application to the Commissioner for Body Corporate and Community Management Office as to the alternative insurance that can be put in place.