#29189
Austman
Flatchatter

    JimmyT said  Compulsory strata insurance “covers all the buildings” means, basically,  common property and all that entails.

    I think it’s more accurate to say that compulsory strata building insurance covers what the legislation says it must cover.  And that varies from state to state and even from strata scheme to strata scheme.   It can cover considerably more than just common property.  It can cover lot owned building structures and other lot property including “owners’ improvements and owners’ fixtures”.

    In NSW for example:

    161 Requirements for damage policy

    (3) Parts of building to be covered
    The parts of a building to be covered by a damage policy include the following:
    (a) owners’ improvements and owners’ fixtures forming part of the building,

    Other states have that requirement too. 

    Stratas in VIC and ACT can have entire buildings that are actually lot property, especially in horizontal type stratas.  But even in my Melbourne CBD high rise, I was surprised to discover, on advice from a strata lawyer,  that the upper floor in my 2 floor apartment is actually lot property!   It’s all still covered by compulsory strata building insurance because the strata act in VIC states that it must be.   In the ACT, class B units (horizontal type stratas) can be exempted from compulsory strata building insurance if voted that way at every AGM.

    JimmyT said  ‘… often covers lot fixtures and improvements” means what? Kitchen cupboards? An internal shelf on a wall? An approved extension?  An unapproved extension? Either way, the word “often” should have readers looking at their policies to see what actually is covered.

    They should be looking in the legislation too.  Because if that cover is compulsory there’s no ‘often’ in that case.  That cover must be included in compulsory strata building insurance in ACT, NSW, VIC and probably other states too.   But it would be optional in the cases where compulsory strata building insurance was not required.

    It seems in the OP’s case, there is building insurance cover for the damage but the committee doesn’t want to claim on it.