building insurance

[alpina]

our bank has just requested that we provide them with a copy of our building insurance. Interestingly, the loan was taken out in 99 and this is the first time they have asked for it.

given that its a unit, i always thought that building insurance was covered by the body corp. accordingly, to date, we have only ever taken out landlord and contents insurance. are we missing something or do we really need to furnish this insurance seperately?

julie

 

[XBenX]

had the same problem - what my bank was asking for is just a certificate of currency for the body corp insurance - I assume it would be the same in your case.

contact your strata manager and get them to fax it over

 

[geoffw]

Body corporate insurance covers the building outside your unit. It does not cover, for instance, internal walls or fittings, carpets.

Ross Sneddon has covered this quite well- http://www.somersoft.com/forums/showthread.php?postid=32139#post32139

 

[XBenX]

ie the body corp insurance covers all common areas and returns your unit to the way it was minus internal fittings and fixtures (see the link for more detail)

your contents insurance covers all these internal fitting and fixtures as well as other items

but thats another issue, what you need to know is below

what the lender will require, is a certificate of currency for the body corp's insurance

so you arent req'd to take out any further insurance

 

[alpina]

rang lender

think its a std letter they send out wanting to be named on the policy. when they realised it was strata they told me it was ok and that they will note it on my policy and that i need not worry further.

its great when you have a good experience with your lender

julie

 

[Ross Sneddon]

Hi Alpina

Others on this thread have I think answered your question.

Perhaps I may suggest that the bank is protecting their asset, (your loan) by checking that a continuation of insurance has taken place. That's cool.

It is also in your interest as well. Different States, different laws but in general a Body Corporate MUST effect insurance on the buildings etc., But it is possible that someone "may forget" or the amount insured is inadeqate or a careless approach is adopted and an insurance company will only pay out if they must.

Most State laws require that at least once each five years that the building be valued by a licenced, registered Valuer in that State and familiar with the area and a valuation for insurance purposes be provided and used for the insurance on the building. It would be in your interest to check that the BC Manager or Secretary or BC Committee have in fact done this correctly. A Real Estate Agent is NOT a Valuer unless they hold BOTH qualifications.

Regards

Ross

 

[geoffw]

Alpina,

Your bank is satisfied with you not having the extra insurance which would protect internal fitout etc in case of fire.

My choice has been to take a contents cover (that is MY contents, not the tenants') which also covers things the Body Corporate insurance does not.

But then, it's also been my choice not to take out landlords' insurance- the rent lost for any individual rent loss does not warrant the expense.

 

[alpina]

guys,

just to clarify - we have always had landlord, contents and public liability insurance on the property. the only question mark was on building insurance which we assumed and have now confirmed is provided for by the body corp. what put us in a little bit of a spin was the fact that the lender originally wanted to be named on the policy but thy have now said that this is no longer necessary.

all is cool now and thanks for all the feedback

julie