sec.123Insurance for buildings with no common walls [ SM, s 204 ]

sec.123 Insurance for buildings with no common walls [ SM, s 204 ]

This section applies if— lots included in the community titles scheme were created under a standard format plan of subdivision; and on 1 or more of the lots mentioned in paragraph (a) , there is a stand-alone building. The body corporate may establish an insurance scheme (a voluntary insurance scheme ) under which it puts in place insurance over stand-alone buildings for the owners of the lots on which they are located. Taking part in the voluntary insurance scheme is optional, and the owner of a lot who wants to take part in the insurance scheme must— notify the body corporate of the replacement value of the stand-alone buildings to be insured; and comply with other requirements under— the decision of the body corporate establishing the voluntary insurance scheme; or the policy of insurance. The owner of a lot who takes part in the voluntary insurance scheme is liable to pay a contribution levied by the body corporate that is a proportionate amount of the premium fairly reflecting— the proportion of the total replacement value of the buildings insured under the voluntary insurance scheme represented by the stand-alone buildings on the owner’s lot; and the proportion of the total risks covered by the policy attributable to activities carried on, or proposed to be carried on, on the owner’s lot. The contribution for which the owner of a lot is liable may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund. If the body corporate does not establish a voluntary insurance scheme and the owner of a lot on which there is a stand-alone building makes an improvement to the common property, the owner must— insure the improvement for full replacement value; and give the body corporate each of the following details— the nature and value of the improvement; the name of the insurer of the improvement; the amount of cover under the insurance policy; a summary of the type of cover under the policy; public risk insurance, building insurance, common property insurance the amount of the premium; the amount of any excess payable on the happening of an event for which the insurance gives cover; the date the cover expires. A policy of insurance taken out under subsection (6) — must cover, to the greatest practicable extent— damage; and costs incidental to the reinstatement or replacement of the improvement, including the cost of taking away debris and the fees of architects and other professional advisers; and must provide for the reinstatement of the improvement to its condition when new. (sec.123-ssec.1) This section applies if— lots included in the community titles scheme were created under a standard format plan of subdivision; and on 1 or more of the lots mentioned in paragraph (a) , there is a stand-alone building. (sec.123-ssec.2) The body corporate may establish an insurance scheme (a voluntary insurance scheme ) under which it puts in place insurance over stand-alone buildings for the owners of the lots on which they are located. (sec.123-ssec.3) Taking part in the voluntary insurance scheme is optional, and the owner of a lot who wants to take part in the insurance scheme must— notify the body corporate of the replacement value of the stand-alone buildings to be insured; and comply with other requirements under— the decision of the body corporate establishing the voluntary insurance scheme; or the policy of insurance. (sec.123-ssec.4) The owner of a lot who takes part in the voluntary insurance scheme is liable to pay a contribution levied by the body corporate that is a proportionate amount of the premium fairly reflecting— the proportion of the total replacement value of the buildings insured under the voluntary insurance scheme represented by the stand-alone buildings on the owner’s lot; and the proportion of the total risks covered by the policy attributable to activities carried on, or proposed to be carried on, on the owner’s lot. (sec.123-ssec.5) The contribution for which the owner of a lot is liable may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund. (sec.123-ssec.6) If the body corporate does not establish a voluntary insurance scheme and the owner of a lot on which there is a stand-alone building makes an improvement to the common property, the owner must— insure the improvement for full replacement value; and give the body corporate each of the following details— the nature and value of the improvement; the name of the insurer of the improvement; the amount of cover under the insurance policy; a summary of the type of cover under the policy; public risk insurance, building insurance, common property insurance the amount of the premium; the amount of any excess payable on the happening of an event for which the insurance gives cover; the date the cover expires. (sec.123-ssec.7) A policy of insurance taken out under subsection (6) — must cover, to the greatest practicable extent— damage; and costs incidental to the reinstatement or replacement of the improvement, including the cost of taking away debris and the fees of architects and other professional advisers; and must provide for the reinstatement of the improvement to its condition when new.