Many people are not aware, but body corporate service is essential for different companies operating in Australia. In fact, it is wise to have insurance for body corporates. This ensures the protection of their service after electing the chairperson, holding an annual general meeting, and various other jobs. The insurance will cover several properties and contents that come under a body corporate entity. Owners of this unit usually share the premium costs. This includes liability and body corporate fees.
Why insurance of body corporate services is important
Insurance of body corporate entities is becoming essential every passing day. It helps to provide liability coverage of the public if they are injured on any common property. Each state in Australia has various legislative requirements when it comes to body corporate properties. You should check in advance what the insurance policy beholds and the legislative requirements your state has. Corporate service providers should make sure that they insure their properties. They also need to check if the respective insurance policy meets the legislative requirements of the state.
What to expect from body corporate services
Body corporate services are responsible for financial, insurance, compliance, and a variety of other essential functions related to a common property. If you are the owner of one of those properties, it makes you a direct member of the body corporate. When someone owns more than half of the same property, they become the new member. However, the property needs to have body corporate in the first place.
Many people think that even a tenant in that property is a member. That is not true. Tenants can never become a member of body corporate even if he/she is paying rent for the entire building. You need full ownership to become a member. When there is a body corporate operating in the common property, you can expect them to select a professional manager. This manager will look to manage caretaking, handle different body corporate administrative processes, and look after the insurance of the property.
A body corporate adheres to the state guidelines so that people can live harmoniously. They should make sure that the building looks attractive. This helps to retain the owners and tenants. Some of the services that they should take care of are installing air conditioners, awnings, satellite dishes, painting the exterior of the building, etc. However, it is not the responsibility of one member. All the members of the body corporate should collaborate to provide these services.
The insurance premium of a body corporate depends on various factors:
- The total replacement cost of the common property.
- Mandatory body corporate requirements of the respective state.
- Condition and age of the common property.
- Vulnerability to insured events, such as building design, building materials, and building codes.
- Commercial activities are taking place inside the property like holiday letting.
- Commissions and fees from agents.
So, before picking an insurance policy for a body corporate, check the state requirements and the terms and conditions of the premium before signing.