Building Insurance

Our building insurance is paid annually, and is currently with Longitude Insurance Pty Ltd. There is a standard excess of $2,000 per claim. 

In a body corporate, building insurance is not calculated the same way as a standard home insurance policy. It’s based on a regulated process because the insurer must cover all common property and units under one policy. 

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1. Sum Insured (Replacement Value)

• The insurance must cover the full replacement and reinstatement value of our building, not just market value.

• This includes demolition, debris removal, and professional fees (architects, engineers, surveyors).

• By law, we are required to obtain an independent insurance valuation at least every 5 years to set an accurate sum insured.

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2. Premium Calculation

Insurers look at a range of risk factors:

• Rebuild cost (from the valuation report).

• Building characteristics (construction type, age, number of storeys, fire safety, lifts, pools, basements).

• Location risks (flood, storm, cyclone, bushfire, crime rates).

• Claims history of our building.

• Excess levels chosen by the body corporate.

• Optional inclusions (e.g., catastrophe cover, office bearer liability, machinery breakdown for lifts/pumps).

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3. Statutory Requirements

• Insurance must cover all units and common property in full – individual owners can’t opt out.

• Must include public liability insurance for at least $20 million.

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4. Cost Sharing Between Owners

• Premiums are paid out of the administrative fund.

• Each owner contributes according to their lot entitlement (as set out in our CMS).

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In short:
Building insurance is calculated based on rebuild cost, not the market value of the building. 

The body corporate pays the premium as a whole, then recovers costs from lot owners proportionally.

 

NB: Insurance also includes - 'Voluntary Workers Personal Accident' Insurance

Covers accidental death or injury while performing 'volunary Work' on behalf of the insured (ie. Centra)

Your Contents Insurance

The building insurance does not cover your contents, if you want cover you will need to take out your own contents insurance.

Rule of thumb = If you could turn your unit upside down and shake it, what ever fell out is covered by contents insurance.

 

Making an Insurance Claim - Building Insurance