In Building Format Plans, the Body Corporate is responsible to insure the buildings on scheme land. Most insurance policies include cover for anything that is ‘plumbed in’ to the building. This would include stoves, airconditioning units, solar panels, rainwater tanks. Insurance coverage addresses events such as fire, theft, motor fusion, storm and consequential damage. It does not address wear and tear! It is easy to confuse the assets that are covered by insurance with the assets that are the maintenance responsibility of the Body Corporate. They are not the same!
In Building Format Plans, the Body Corporate maintenance responsibility ends at the boundary walls to the lot. If a water pipe bursts inside the boundary wall, the Body Corporate is responsible for repair. If the water pipe bursts in the portion of the pipe protruding from the boundary wall, then the lot owner is responsible for repair. If the water pipe bursts inside an internal wall, then the lot owner is responsible for repair. In all cases, a claim on the Body Corporate insurance could be sought for any consequential damage.
