Understanding Body Corporate Insurance: What Every Owner Needs to Know
When you own a property in a community titles scheme—like an apartment, townhouse, or unit complex—there’s more to insurance than just your own contents policy. The body corporate is legally responsible for insuring common property and shared structures under the Body Corporate and Community Management Act 1997 (BCCM Act). But what does that actually mean for you?
Let’s break it down.
Why Body Corporate Insurance Is Essential
Under the BCCM Act, a body corporate must hold insurance for specific risks, including:
1. Building Insurance
This covers all buildings that are part of the scheme—think roofs, stairwells, lobbies, and shared gardens. It protects against major risks such as fire, storm damage, flood, and vandalism.
2. Public Liability Insurance
This protects the body corporate if someone is injured or their property is damaged in a common area like a car park or pool. Legal and medical costs can be substantial, so this coverage is critical.
3. Office Bearers’ Liability Insurance (Optional)
Although not mandatory, many committees opt for this coverage to protect members if they’re sued for decisions made in their official capacity.
How Premiums Are Calculated
The cost of body corporate insurance depends on several key factors:
Property size and value: Larger and more valuable buildings cost more to insure.
Claims history: Past insurance claims may increase future premiums.
Location-based risk: Properties in flood-prone or bushfire-risk areas will likely have higher premiums.
Coverage level: Opting for additional protection beyond what’s legally required will impact the cost.
Making a Claim: What You Need to Know
As an owner, you’re part of the body corporate, which means you can use the collective insurance policy when needed. However, responsibility for the insurance excess depends on where the issue began:
Inside your lot? You’re responsible for the excess.
In common property? The body corporate typically covers it.
To lodge a claim:
Complete a claim form (request one via insurance@peakbcm.com.au).
Include supporting documents such as photos, quotes, or reports.
Submit your claim to the insurance broker—an assessor may be appointed depending on the nature and size of the damage.
Still Have Questions?
Whether you’re on a committee or simply want to better understand your rights and responsibilities, it pays to be informed. For tailored guidance or claim assistance, contact us at:
📞 07 5528 9999