Columns
10 years on Image

10 years on

Mercurio visits Docklands’ garden
Read more >>

Away from the desk Image

Away from the desk

The little bent tree
Read more >>

Chamber update Image

Chamber update

Docklands Business Awards 2020
Read more >>

Docklander Image

Docklander

Resourcing Gippsland
Read more >>

Docklands Secrets Image

Docklands Secrets

Conflicting speeds
Read more >>

Chinese

滨海港区不在新的日照控制计划内
Read more >>

Fashion Image

Fashion

Top five street style trends
Read more >>

Health and Wellbeing Image

Health and Wellbeing

The importance of sitting correctly to save your spine
Read more >>

Letters Image

Letters

Bring on the lasers
Read more >>

Business Image

Business

New offerings at The District Docklands Market Lane
Read more >>

Owners Corporation Law Image

Owners Corporation Law

VCAT rules termination payment was unlawful
Read more >>

Pets Corner Image

Pets Corner

Dachshunds for days!
Read more >>

Precinct Perspectives

2020 in Yarra’s Edge
Read more >>

SkyPad Living Image

SkyPad Living

Vertical villages - an owners’ corporation manager’s view
Read more >>

Street Art Image

Street Art

Goodbye from Blender Studios
Read more >>

Sustainability

Preparing for a circular economy
Read more >>

The District

Eat your way through our most delicious hot spots
Read more >>

We Live Here Image

We Live Here

More short-stay abuse - with no recourse for residents
Read more >>

Abby's Angle  Image

Abby's Angle

Enjoying the new decade
Read more >>

Owners’ Corporation Law - March 2015

05 Mar 2015

‘Extra’ policies buy peace of mind for owners

At every annual general meeting, there will be a standard motion on the agenda to renew the policy of insurance for the owners’ corporation (OC).

An owners’ corporation is required by the legislation to hold a minimum of $10 million coverage for acts that involve public liability, as well as replacement and reinstatement insurance for the value of all buildings and structures on the common property.

However, there are many other types of insurance that can be taken out by OCs, and owners should carefully review the policies and decide whether any of these extra types of insurance ought to be added to the policy.

Factors such as the age of the building and whether there are any legal disputes on the horizon ought to influence the type of insurance coverage that an OC should elect to add to its policy.  I should point out, however, that OCs are required to comply with the utmost duty of good faith in disclosing any actual and potential issues to an insurer prior to entering into any policy.

In addition, owners ought to instruct their managers to obtain at least two quotes from different insurance providers, or otherwise use a broker. There are rumours that a large foreign-owned insurer will enter the market soon, offering competitive rates which may lead to lower insurance premiums in the coming 12 months or so. Watch this space.

By ordinary resolution at an AGM, the OC can decide to take out additional policies to cover things such as:

  • Office bearers’ (committee) legal liability;
  • Workers compensation;
  • Fidelity guarantee;
  • Machinery Breakdown;
  • Catastrophes;
  • Legal defence expenses;
  • Government audit costs;
  • Appeal expenses; and
  • Common property contents (for items such as art, floor coverings and furniture in the lobby areas).

Recent events such as the fire in the Lacrosse building in Docklands should serve as a sobering reminder to all that the operation of these types of policies ought to be of paramount importance to the OC.

Having good legal advice to translate the general and specific exclusions of each policy will also assist owners to understand exactly what level of coverage might be expected.

A comprehensive policy will provide ease of mind for both residents and owners alike. If owners are unsure about what policies will be right for them, a number of managers and brokers can organise a meeting and personal briefing with committees to discuss their options.

Stay in touch with Docklands. Subscribe to FREE monthly e-Newspaper.

You must be registered with Docklands News to be able to post comments.
To register, please click here.