What is the actual dollar value the owners should ask to be insured on the building when selecting a body corporate insurance? – Agnes, VIC

Q: Usually, what is the actual $ value the owners should asked to be insured on the building when selecting a Body Corporate insurance? Also, is the $ value of building insured for will be equally shared by the owners/ the B/C members in case if it’s a claim, regardless of the sizes of the individuals’ property size/bedrooms?

A: The value the building should be insured at will depend on the property itself. Amenities and facilities such as gardens, pools, elevators, etc. can affect your building’s insurance value. This amount is usually determined by the insurance provider, who should be able to help clarify and decide the minimum insurance amount for your building.

Building insurance is included in your levies and fees and is usually calculated by unit entitlement. Unit entitlement is based on the market value of the lot at the time of registration of the strata plan, so generally, the larger the lot, the more unit entitlement it has, and the higher the levies for that unit.