Is flood insurance compulsory in a body corporate?
Flood insurance is not always included in standard insurance policies.
In order to satisfy the need for a body corporate to obtain coverage to the greatest practicable extent against water damage, a committee needs to seek additional coverage for damage caused by flooding.
The BCCM allows body corporate committees to apply for an alternative insurance order in cases where it is not possible to secure full compliance, such as in flood-prone areas. Details are here.
Further reading:
- Is insurance compulsory for strata schemes?
- What disclosure obligations does a strata committee have regarding scheme insurance?
- Responsibility for lot damage does not hinge on insurance
- Who is responsible for building insurance?
- Body corporate insurance webinar
- Body corporate insurance obligations
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