Building (Strata Management) Act 2004 · 2020 Revised Edition · Part 5 · Management of Strata Subdivided Buildings
70. Insurance of subdivided buildings
Feedback & supportUnless otherwise directed by a resolution by consensus, the management corporation constituted in respect of a strata title plan must insure every subdivided building shown in the strata title plan and keep the building insured under a damage policy.
management corporation
“management corporation”, in relation to any parcel comprised in a strata title plan, means the management corporation constituted in respect of that strata title plan under the Land Titles (Strata) Act 1967;
A damage policy may provide that, instead of the work and the payments specified in the definition of “damage policy” in section 69 being carried out or made upon the occurrence of any of the events specified in that definition, the liability of the insurer is, upon the occurrence of any such event, limited to an amount specified in the policy that is not less than an amount calculated in the prescribed manner.
damage policy
“damage policy”, in relation to a subdivided building, means a contract of insurance providing, in the event of the subdivided building being destroyed or damaged by fire, lightning, explosion or any other occurrence specified in the policy —(a)for —(i)the rebuilding of the subdivided building or its replacement by a similar building in the event of its destruction; and(ii)the repair of damage to, or the restoration of the damaged portion of, the subdivided building in the event of its being damaged but not destroyed,so that, in the case of destruction, every part of the rebuilt building or the replacement building and, in the case of damage, the repaired or restored portion, is in a condition no worse nor less extensive than that part or portion or its condition when that part or portion was new; and(b)for the payment of expenses incurred in the removal of debris and the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration;