With all the rainfall in South East Queensland in February 2022, it is time for a reminder about what a Body Corporate's mandatory building reinstatement and replacement insurance policy must cover.
A Body Corporate regulated by the Accommodation Module must insure each building in which there is a lot (apartment) that covers:
Damage (from earthquake, explosion, fire, lightning, storm and water, glass breakage and from impact, malicious act, and riot); and
Costs incidental to the reinstatement or replacement of insured buildings, including the cost of taking away debris and the fees of architects and other professional advisers.
(regulation 188 of the Accommodation Module)
A ‘building’ includes improvements and fixtures that form part of the building but excludes:
temporary wall, floor, and ceiling coverings; or
fixtures removable by a lessee or tenant at the end of a lease or tenancy; or
mobile or fixed air-conditioning units servicing a particular lot; or
curtains, blinds, or other internal window coverings; or
carpet; or
mobile dishwashers, clothes dryers, or other electrical or gas appliances not wired or plumbed in.
(Excluded Items)
(under regulation 185 of the Accommodation Module)
So, a Body Corporate regulated under the Accommodation Module has no duty to obtain insurance to cover damage to carpets or other Excluded Items. However, it may decide to obtain additional insurance that does provide additional cover.
To find out for sure, ask for a copy of the Policy Disclosure Statement and Certificate of Currency from the Body Corporate (via its manager) and double-check if additional carpet cover has been obtained or not.
Here at The Nuu Co we believe in full transparency for all owners. That's why we make all of your body corporate records, including your Body Corporate's insurance certificates of currency and policy disclosure statements available online to all owners 24/7. Because details about body corporate insurance should not be difficult for owners to find out.