November 2021
Read Time: 3 Minutes
There are numerous insurers who can provide general insurance coverage for a body corporate. The most ideal cover, however, is a body corporate-specific insurance policy such as the Orion policy - which is available exclusively to Crockers clients.
When you buy into a body corporate, your body corporate fees include the cost of some elements of the insurance cover you need as a homeowner (keep reading for details of what is, and what isn’t, covered). The Unit Titles Act requires a body corporate to carry full reinstatement insurance for the complex – unlike a private homeowner, you don’t have the choice of partial cover. Your entire complex will be insured under one policy, and you can’t insure your own unit separately yourself. Body corporate-specific insurance is best, as it will take account of the issues which are specific to a building or complex where the units are interdependent in many and varied ways.
Body corporate-specific insurance is designed specifically for body corporate needs. It is essential that your complex is insured at all times and that that insurance is fit for purpose. An off-the-shelf material damage property policy or business interruption and liability policy is unlikely to provide adequate cover in the event of a claim. A body corporate insurance policy should have a number of automatic extensions that are specific to a body corporate’s needs.
Body corporate insurance covers the building and all shared or common property. The insurance policy will cover areas such as balconies, gardens, lifts, stairwells, car parks, pools, spas and tennis courts. All insurance policies contain a range of exclusions so the body corporate should make themselves aware of these. Standard exclusions include building defects, faulty workmanship/design, wear and tear and, now more relevant than ever, communicable diseases.
All insurance policies also exclude war, terrorism and nuclear risks as standard.
No, your body corporate insurance does not cover your personal possessions. While the body corporate insurance will cover the building including your apartment/property, all common property and fixed chattels, your possessions still need to be covered by your personal contents insurance.
Gallagher (as the lead broker) has worked with Crockers to create the market-leading Orion insurance policy. The Orion policy has been tailor-made for the risks and issues faced by multi-owner complexes and has been developed and refined over many years of collaboration between Crockers and Gallagher. The Orion policy has been operating since 2006 and covers more than 750 of the bodies corporate that are managed by Crockers. See our article on How Does Body Corporate Insurance Work for detailed Orion insurance policy features.
The Orion insurance policy is designed to accommodate the key features of multi-owner complexes which ordinary building insurance does not cover. One benefit is that the Orion policy provides the largest sub-limit in the market with a standard sum insured of insured up to $150,000,000 replacement value for each body corporate. The policy also provides generous extensions for loss of rent and alternative accommodation.
Each body corporate committee needs to be protected from the cost of defending an action against the committee or individuals by third parties. The Orion policy includes Body Corporate Committee Indemnity cover of $1,000,000 as standard.
The Orion insurance policy is competitively priced and is exclusively available to Crockers’ clients. See the Orion website for the most up-to-date Orion Insurance Benefits. All cover is subject to the Orion policy wording terms and conditions which can be found on the Orion website and policy wordings.
The Orion policy has a variety of benefits for landlords. Under the Orion policy, there is no limit to malicious damage cover. If an apartment needs to be decontaminated due to illegal drug use, the Orion policy has a very generous $75,000 decontamination limit per claim. Loss of rent cover if the property is found to be uninhabitable (due to fire or water damage etc) is available upon presentation of a valid residential tenancy agreement, for the same period as is available for the Alternative Accommodation benefit.
How you make a claim on your Orion policy will depend on the scale of the claim. For larger claims contact should be made via the loss adjuster on a 24-hour a day contact number. For smaller claims, it is sufficient to complete and lodge a claim via the Orion website.
Disclosure of material facts in insurance is a requirement across all insurance policies and body corporate insurance is no different. Scenarios such as the fact that a property is going to be vacant for an extended period of time should be disclosed, in which case it may become a condition of the policy that the underwriter is made aware of any unoccupied units. Clients can provide relevant information they consider a ‘Material Fact’ to their broker or account manager at any time for peace of mind. Disclosure is the best policy when you are in doubt, as non-disclosure of material facts may impact your claim.
Body corporate insurance is a large area. We’re here to help answer your body corporate insurance questions, so feel free to contact Crockers’ Body Corporate/Community Living experts on 09 968 3311 or email bc@crockers.co.nz. With specific regards to the Orion Insurance Policy, please note that all cover is subject to the Orion policy wording terms and conditions which can be found on the Orion website.
Call 0800 CROCKERS or Call 0800 2762 5377
