#25690
scotlandx
Strataguru

    Congratulations on achieving that result!

    The payout belongs to the owners collectively, i.e. the owners corporation.  It is the owners corporation that has the insurance, not the owners severally.  Therefore the owners corporation receives the money.  

    We received a home warranty insurance payout some time ago after an experience with a dodgy builder, it just went into the OC’s funds.

    Unit entitlements are not relevant to the apportionment of the money, the money would be spent on the repairs as they are required – to that extent you are correct, the money must be spent on those repairs.  However, that would not be determined by entitlement, but by the repairs needed.  For example, a smaller unit may need more repairs than a larger unit and if that is the case then those repairs have to be carried out. 

    If there were any money remaining after repairs had been effected, that would remain in the owners corporation’s funds, and would benefit all the owners as it would offset any future liabilities.  In that respect you could say that that benefit would accrue to each owner differently, in accordance with their entitlements.