Is the body corporate required by law to have insurance?

Yes. Under the BCCM Act, the body corporate is legally required to take out and maintain a building insurance policy covering the full replacement value of the scheme's insurable assets. This is not optional — it is a statutory obligation. The policy must: - Be with a licensed insurer - Cover all lots and common property to full replacement value - Be renewed each year The body corporate is also required to hold public liability insurance of at least the minimum prescribed amount (currently $10 million). The committee is responsible for ensuring policies are current and that insured values are adequate. Failure to maintain adequate insurance could expose the body corporate — and ultimately all owners — to significant uninsured loss. This article is general information only and not legal advice.