99Insurance of buildings, &c., by body corporate

99 Insurance of buildings, &c., by body corporate

(1)  [Section 99 Subsection (1) substituted by No. 33 of 2006, s. 31, Applied:18 Dec 2006] The body corporate for a strata scheme must take out and maintain a policy of insurance for the buildings and other improvements (if any) on the site in accordance with this section.

Penalty:  Fine not exceeding 50 penalty units.

(2)  The policy of insurance –

(a) must cover –

(i) [Section 99 Subsection (2) amended by No. 33 of 2006, s. 31, Applied:18 Dec 2006] damage from fire, storm, tempest or explosion; and

(ia) [Section 99 Subsection (2) amended by No. 33 of 2006, s. 31, Applied:18 Dec 2006] any other prescribed risks; and

(ii) costs incidental to the reinstatement or replacement of the buildings, including the cost of removing debris and the fees of architects and other professional advisers; and

(b) must provide for the reinstatement of the buildings and improvements to their condition when new.

(3)  The body corporate for a community scheme must insure property in accordance with the requirements (if any) of the scheme.

(3A)  [Section 99 Subsection (3A) inserted by No. 33 of 2006, s. 31, Applied:18 Dec 2006] A body corporate may insure against –

(a) loss from dishonesty, negligence or other wrongful conduct; or

(b) other risks.

(4)  [Section 99 Subsection (4) amended by No. 33 of 2006, s. 31, Applied:18 Dec 2006] [Section 99 Subsection (4) amended by No. 33 of 2006, s. 31, Applied:18 Dec 2006] Despite any provision of the policy of insurance but subject to , the body corporate (and not the owner of a lot) is liable to pay an amount payable, by way of excess, under the policy taken out by the body corporate under this section and any contribution that has to be made to the cost of reinstatement or repair because the insurance is not for the full replacement value of the insured property.