39Building insurance by body corporate

39 Building insurance by body corporate (1) A body corporate of a community title scheme must insure and keep insured all buildings on the common property of the scheme for their replacement value from time to time against all of the following risks: (a) fire, lightning, tempest, earthquake and explosion; (b) riot, civil commotion, strikes and labour disturbances; (c) malicious damage; (d) bursting, leaking and overflowing of boilers, water tanks, water pipes and associated apparatus; (e) impact of aircraft (including parts of, and objects falling from, aircraft) and road vehicles, horses and cattle. (2) However, if the replacement value of all buildings on the common property of the community title scheme is less than the amount prescribed by regulation, the body corporate may, by unanimous resolution, exempt itself from the requirement to take out building insurance under subsection (1) for any risk stated in the exemption resolution. (3) An exemption resolution under subsection (2) has effect on the day after the general meeting when it is passed until the day of the next annual general meeting.