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There will be no compulsion to review insurance under the new legislation.
Here is the definitive answer, from a Ministerial spokesman:
Section 83 (2) of the Strata Schemes Management Act 1996 required strata scheme buildings to be insured for at least the value of the building indicated by the last valuation obtained for the building. Section 85 required property valuations for the purpose of insurance under the Act to be obtained at least every five years. Both of these sections were repealed on 5 November 2015 by the Regulatory Reform and Other Legislation Repeals Act 2015. The repeal of these sections related to the de-regulation of the property valuer profession in NSW.
These provisions were not therefore included in the Strata Schemes Management Act 2015, and it is not intended to address the issue in the forthcoming Regulations.
Clause 9 of Schedule 1 of the Strata Schemes Management Act 2015 requires that the particulars of each insurance policy taken out by the owners corporation must be included in, or accompany, the notice given to lot owners of each annual general meeting. This enables lot owners to assess the need for any adjustment of the amounts the property is to be insured for. The owners corporation can obtain a property valuation at any time they wish.