The owners corporation for a strata scheme for the whole of a building must insure the building and keep the building insured under a contract of insurance, in accordance with this Division, that insures the building if it is destroyed or damaged by fire, lightning, explosion or any other occurrence specified in the policy (a ).Maximum penalty—5 penalty units.
The owners corporation for each strata scheme for part of a building and any other person in whom is vested an estate in fee simple in part of the building that is not included in the parcel of the strata scheme must insure the building and keep the building insured under a damage policy.Maximum penalty—5 penalty units.
In any proceedings for an offence under subsection (2), it is a defence to establish that the defendant was willing to join in the insurance of a building under a damage policy but that the policy could not be taken out because another person specified in that subsection was unwilling to join in the application for that policy.
This section does not apply to an owners corporation for a strata scheme comprising 2 lots if—
the owners corporation so determines by unanimous resolution, and
the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and
no building or part of a building in the strata scheme is situated outside those lots.
A damage policy may consist of one or more policies of insurance.