Pre-registration is a critical point in the development process. In each of our projects we utilise our tailored pre-registration checklist, which mitigates risk and liability for your development.
We ensure all documents are consistent and accurate. Once the project is complete, we prepare the documentation for the First General Meeting to establish the Body Corporate. Following this we finalise our agreement and provide resolutions.
What sort of insurance policy is required for the Body Corporate?
Strata Schemes require a specialized strata policy.
These policies will normally include:
- the main building cover;
- common property and contents;
- loss of rent;
- building catastrophe;
- legal liability (it is a requirement that public liability cover to at least $10 Million is to be taken out);
- voluntary workers;
- fidelity guarantee; and
- office bearers liability.
Further additions such as ‘Machinery Breakdown’ and flood cover may be added. Machinery breakdown cover would be taken out if there is substantial machinery on-site, for example lifts, which are not covered under an initial warranty period.
It is a requirement that Public Liability cover to at least $10 Million is to be taken out.
How is the Sum Insured determined?
There is a requirement under the Act that the Original Owner (typically would be the developer) needs to obtain and supply to the Body Corporate prior to the First AGM, a Replacement Insurance Valuation for the Scheme.It is this valuation that indicates the correct sum insured for the insurance policy.
When is the policy taken out?
The policy, or a cover note, must be activated as soon as the Scheme comes into existence so that protection for Owners is in place.
Who arranges and pays for it?
The developer is responsible for arranging the insurance policy for a full 12 months from the date of registration of the scheme. It is the statutory obligation of the developer to pay the premium, however this can be recouped through settlement adjustments of new owners..
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