Owners often ask whether they can claim from the body corporate insurance policy when something in their unit is damaged. The answer is: sometimes, but not automatically.
The body corporate policy is not the same as an owner’s household contents policy. Trustees must check the type of damage, the policy wording and whether the item falls within the insured property.
What the body corporate policy usually focuses on
The body corporate policy usually focuses on buildings, scheme property and certain related risks. It does not automatically cover everything inside a unit.
When an owner may have a claim
An owner may have a claim where the damage relates to insured property under the body corporate policy and the event is covered by the policy. For example, certain water damage or building-related damage may be claimable.
What owners should insure themselves
Owners should usually arrange their own cover for contents, personal belongings, moveable items, and risks that are not included in the body corporate policy.
What trustees should check before answering
- What exactly was damaged?
- Is it part of the building or an owner’s contents?
- What caused the damage?
- Does the policy cover that cause?
- What excess applies?
- Who is responsible for the excess?
- Are there limits or exclusions?
Common questions
Can an owner claim directly from the insurer?
In practice, claims are often managed through the body corporate, trustees, managing agent or broker because the policy belongs to the body corporate. Processes vary by insurer and policy arrangement.
Does the body corporate policy cover carpets or cupboards?
It depends on the policy wording, cause of damage and whether the item is treated as part of the insured building or an owner’s own contents/improvement.
Should owners still have their own insurance?
Yes. Owners should have their own contents and personal insurance because the body corporate policy does not cover everything.