The General provisions of relevant NT legislation means that the Body Corporate must insure:
- Common property and body corporate assets
- Buildings in which lots are located
Unlike other states, there is no mandatory insurance valuations in Northern Territory, though we recommend that one be provided every five years.
NT Legislation provides statutory definitions of the following terms:
Scheme Land of a scheme:
- Comprises the units and common property of the scheme; and
- Includes any scheme building
A Scheme Building:
- Is any fixed structure on the scheme land (including, for example, a swimming pool) or a thing prescribed by regulation; but
- Does not include any of the following:
- Coverings for a ceiling, floor or wall;
- Any fixtures installed by a lessee of a unit that are removable at the end of the lease
- A thing prescribed by regulation.
- Earthquake, explosion, fire, lightning, storm, tempest and water damage
- Glass breakage
- Damage by impact, malicious act, riot
Applies to Common Property and Assets. It must cover damage and costs associated with the reinstatement or replacement of insured buildings (including the the cost of taking away debris and the fees for architects and other professional advisors). The policy must provide for reinstatement of property to its condition when new.
Compulsory Insurance also applies to public risk (public liability) insurance over common property and for assets for which it is practical to have public risk insurance. Public risk insurance must provide for compensation for third party bodily injury and third party property damage. The sum insured for such insurance must be no less than $10million.