sec.55Insurance for buildings with no common walls

sec.55 Insurance for buildings with no common walls

This section applies if— the lots included in a specified two-lot scheme were created under a standard format plan of subdivision; and on both of the lots mentioned in paragraph (a) , there is a building (a stand-alone building ) having no common wall with a building on the other lot. The body corporate may, by a lot owner agreement, establish an insurance scheme (a voluntary insurance scheme ) under which it puts in place insurance over the stand-alone buildings for the owners of the lots on which they are located. If a voluntary insurance scheme is established, the owner of each lot must— notify the owner of the other lot of the replacement value of the stand-alone building to be insured; and comply with other requirements under— the lot owner agreement 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 that is a proportionate amount of the premium fairly reflecting— the proportion of the total replacement value of the building insured under the voluntary insurance scheme represented by the stand-alone building 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. If the body corporate does not establish a voluntary insurance scheme and an 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 owner of the other lot included in the scheme and the body corporate 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 (5) — must cover, as far as practicable— 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.55-ssec.1) This section applies if— the lots included in a specified two-lot scheme were created under a standard format plan of subdivision; and on both of the lots mentioned in paragraph (a) , there is a building (a stand-alone building ) having no common wall with a building on the other lot. (sec.55-ssec.2) The body corporate may, by a lot owner agreement, establish an insurance scheme (a voluntary insurance scheme ) under which it puts in place insurance over the stand-alone buildings for the owners of the lots on which they are located. (sec.55-ssec.3) If a voluntary insurance scheme is established, the owner of each lot must— notify the owner of the other lot of the replacement value of the stand-alone building to be insured; and comply with other requirements under— the lot owner agreement establishing the voluntary insurance scheme; or the policy of insurance. (sec.55-ssec.4) The owner of a lot who takes part in the voluntary insurance scheme is liable to pay a contribution that is a proportionate amount of the premium fairly reflecting— the proportion of the total replacement value of the building insured under the voluntary insurance scheme represented by the stand-alone building 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.55-ssec.5) If the body corporate does not establish a voluntary insurance scheme and an 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 owner of the other lot included in the scheme and the body corporate 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.55-ssec.6) A policy of insurance taken out under subsection (5) — must cover, as far as practicable— 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.