The Act requires bodies corporate to take out the following policies:
- Common property and body corporate assets – for damage and reinstatement;
- Building including lots (if a BFP scheme) – for full replacement value; and
- Public risk on common property and relevant assets – $10m for a single event and $10m for a single period.
Most insurers will offer additional cover for “normal” risks for your type of scheme, for example, loss of rent or office bearers (committee members) liability. While it’s great to have the “extras” make sure you’ve got the basics covered properly first.