Building Insurance

The Owners Corporation takes out building insurance on behalf of the owners.

The Owners Corporation has an insurance policy which covers Owners Corporation property similar to normal household insurance.  It covers the building itself but does not cover any damage to privately owned fittings, as well as carpets, curtains, blinds, light fittings and electric fittings or appliances (including dishwasher) not built into the unit and which can be removed, regardless of how the damage occurred.  The public liability cover does not extend to cover the interior of any apartment, balcony or car space.

It is the responsibility of owners to arrange their own contents and public liability insurance.  Owners acting as landlords require an appropriate policy.
 

If a resident is responsible for damage caused to another apartment or lot or to common property, that resident may be liable for the cost of reinstatement.  Owners should be aware that any damage caused by their tenant is the responsibility of the owner and appropriate recognition of the resident’s responsibility should be set out in lease documents.
 

It is essential that details of any potential insurance claim are forwarded to the Owners Corporation Manager immediately.  Your claim will then be forwarded to the Owners Corporation insurance broker for processing and assessment.
 

Process for The Park Apartments insurance claims available here
 

Insurance Information (provided by our Owners Corporation Manager - VBCS):

The Building and Public Liability policy is arranged in the name of the Owners Corporation.

The policy covers the accidental loss and/or damage to the building and legal liability in relation to Owners Corporation common property.

The cover does not include wear and tear, or damage arising from inadequate or improper maintenance.  An example of excluded cover would be water damage from porous tiles or grout in a bathroom. 

The building insurance policy covers damage caused to fixtures but not damage to fittings. 

The Owners Corporation policy does not extend to cover owner's contents such as furniture, carpets, floating floors, curtains, blinds, light fittings or electrical appliances that are not built into the apartment or integral to the apartment.  If, for example, a fire causes damage to a kitchen, the Owners Corporation insurance policy will reinstate the damaged walls and ceilings and the fire damaged kitchen cupboards, bench tops and built-in appliances such as cook top, wall oven and dishwasher.  These items will be reinstated because fixtures are considered part of the building.

Damage caused to the carpets, floating floors, curtains and personal furnishings would not be covered under the Owners Corporation policy because those items are deemed to be fittings and are specifically excluded even if the loss is caused by the same act that damaged the fixtures.  This exclusion extends to personal possessions such as furniture, electrical goods, bedding and clothing. 

The public liability policy only covers parties injured on common property where the Owners Corporation is found to be liable.

Areas of common property include stairwells, lifts, lobbies, gymnasium and swimming pools.  The public liability policy does not extend to cover injuries sustained by parties such as owners, visitors and friends which occur inside an apartment, courtyard or on a balcony or terrace, car space or storage unit. 

All owners, whether resident or absentee, should effect appropriate contents insurance policy which includes personal liability cover for injuries sustained inside a unit, the owner's car space or other areas which are not common property.

The loss of rent cover provides compensation if an apartment is rendered uninhabitable due to an event under the policy.  For an owner who occupies an apartment, this cover provides for rental of a comparable apartment whilst their apartment is uninhabitable.  For an apartment subject to a tenancy agreement, it provides compensation of the rent payable under the agreement during the period of the apartment being uninhabitable.  

For this cover to operate there is a requirement that the apartment is not fit for habitation, not merely that damage causes inconvenience or a lessened rental opportunity.  For example, a fire in a kitchen which damages part of the kitchen cabinets would not cause the apartment to be uninhabitable and thus the loss of rent cover would not operate.

Any excess applicable to a claim will be met by the party making the claim.  If the claim is for damage to common property, the specific Owners Corporation meets the excess.  Where the claim is for damage to a member's unit, the excess is met by the member making the claim.