For the information of unit owners
Common property liability
As the owner of a Unit in a Strata Plan, you will be aware of the fact that there must be in place Public Liability Insurance Cover over the common property for an amount of $10million to comply with the Subdivision (Body Corporate) Regulations 2001.
The Sale of Land Act states that a person cannot sell a Unit affected by a Body Corporate if these insurance obligations apply and have not been complied with.
More importantly, if you sell such a Unit then any Contract is voidable at the Purchaser’s option so you can never be sure that a settlement will take place.
At James Wiltshire Pty Ltd we have the facility to place Public Liability insurance cover as a standalone policy without you having to insure buildings as well.
Once we have your application and payment, we can usually issue cover immediately and supply Certificates of Insurance within 24 hours.
Why do I need common property liability insurance cover?
With smaller Strata Plans the Unit owners are inclined to insure their own buildings and contents rather than as a group. They do not want to be involved with a Body Corporate.
This insurance cover may not extend to include the common property which, generally speaking, consists of common driveways and external stairwells. This common property is owned by the Body Corporate. Should some incident occur on the common property resulting in a claim, it may not be paid unless you have this cover.
What about my own building insurance?
Even though you may have Public Liability insurance cover with your building and contents insurance policy, it generally is limited to the Unit and does not extend to the common property.
There have been many claims where people have been injured on the common property and each individual Unit owner has had to contribute to the amount claimed out of their own pockets.
Must the other unit owners contribute?
This liability Policy covers the common property of the entire Strata Plan and all Unit owners will enjoy the benefits of the protection that this Policy provides.
However, you must realise that it can be difficult to persuade other owners that they need this cover. Common Property Liability insurance cover is usually obtained at the last minute when an owner is planning to place a Unit on the market and the other Unit owners may refuse to contribute to the cost of the policy.
Terms and Conditions
This section provides details on the terms, conditions and cover provided under the “Common” Liability policy.
It is important that you familiarize yourself with the information provided in this policy to ensure that it meets your needs.
Sum Insured |
$10,000,000 |
Deductible |
$250 each and every claim |
Policy Wording |
|
Notes |
The Public Liability
cover is provided through a standard Business Pack Insurance
policy. As these policies provide for a range of individual
covers only the sections specifically related to Public
Liability are relevant. In reading the
wording provided please pay particular attention to the
sections entitled ‘Important Information’ (pages
2, 3 & 4), ‘Liability Section’ (pages 31
to 37), and ‘General conditions and limitations of
cover’ (pages 38 to 41). |
Our web site also contains both our Privacy Guarantee as well as our Financial Services Guide (FSG)
If you open “Using a Broker” you can read both of these.
We also draw your attention to the information on the bottom of this page relating to “General Advice”
Premium and Payment
The premium is based on the number of units on the Strata Plan of subdivision.
For up to 3 units the premium is $450 including all fees and charges
For up to 5 units the premium is $520 including all fees and charges.
Payment can be made by credit card. Please print out and complete the authority below. You will need to Fax the completed form to us.
The Application Process
1. Read and Understand
Ensure that you have read and understood the Public Liability policy and are satisfied with the extent of covers, terms and conditions.
2. Application
Complete the application form and mark the box confirming the answers to the questions are correct.
If they are not then amend the details as outlined on the application form.
3. Payment
Complete the Mail Order Authority payment slip with your credit card details (Don’t forget the expiry date).
4. Fax
Fax or post your application and credit card payment authority. The fax number is 9584-2624. Or post to PO Box 2582, Cheltenham, 3192.
What we will do
1. Review your application.
2. Process your payment.
3. E-mail or fax Certificate of insurance
4. Post to you a Tax invoice noting that payment has been made.
|
