Insurance: Other – Strata & Community Corporations
Strata & Community Corporations must insure against any other liabilities.
Legislation – Strata Titles Act
Click on Legislation above, to view strata title legislation.
Legislation – Community Titles Act
Click on Legislation above, to view community title legislation.
What does this mean?
Insured against any other liability: This refers to insurance cover for such losses as:
- accidental injury/death to voluntary workers e.g. working bee to clean gutters
- fidelity guarantee – monies fraudulently misappropriated
- office bearers liability – covers committee & officers if sued
- loss of rent – temporary accommodation
Note: Some insurance policies (CHU/QBE) include some of these covers at no extra cost. If this is the case then Section 31 (3a) of the Strata Titles Act does not apply, i.e. no special resolution is needed.
Strata Titles Act (plan number less than 20,000)
Duty to insure against other liabilities.
Section 31 of the Strata Titles Act spells out a Strata Corporation’s need to insure against other liabilities.
(3) A strata corporation must keep itself insured against any other liability-
(a) determined by special resolution of the corporation; or
(b) prescribed by the regulations.
Community Titles Act
Section 104 of the Community Titles Act spells out a Community Corporation’s need to insure against other liabilities..Section
Section 104—Other insurance by community corporation
(1) A community corporation must insure itself—
(a) against risks that a normally prudent person would insure against; and
(b) against such other risks as are prescribed by regulation. Maximum penalty: $15 000.
