VIC Insurance s93 property law- legal requirement?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Vickii

Member
9 November 2020
3
0
1
Our body Corp is paying entire costs to replace a retaining wall that runs along the boundary of our neighbours property. They argue we are obliged under section 93 of the property act to obtain insurance before we commence. Is Ths correct? The company doing the job would have public liability cover. Do we legally have to get the extra insurance cover?
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
7,726
1,056
2,894
www.hutchinsonlegal.com.au
Wrong act.

Owners Corporation law says an owners corporation must have public insurance (min $10M) if there is common property - regardless of what works the corporation is undertaking.
 

Vickii

Member
9 November 2020
3
0
1
Thanks for your reply, we have PL insurance cover but have been advised by neighbour that we are legally required to arrange insurance cover in connection with our retaining wall works (under section 93 of the Building Act here BUILDING ACT 1993 - SECT 93 Owner to arrange insurance cover). and further that if our OC starts the works without doing this, or providing the insurance document to our neighbour, we will commit an offence subject to a fine of 2500 penalty units. They say because the work is classified as protection work our body Corp is legally required to organise this insurance.
Onthe other hand we are receiving conflicting advice that if the the Council has approved the building permit, the builder should have supplied "Project or Home Owner's Warranty Insurance by the builder" Supporting information for Building Permit applications & that the builders’ insurance will cover this.
Any advice on this matter would be greatfully received.
thanks,
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
7,726
1,056
2,894
www.hutchinsonlegal.com.au
The penalty is 250 units for not supply the insurance contract, the penalty for NOT having insurance is 2500.

There is no conflict here. The owner must arrange the insurance and supply the insurance contract to the adjoining owner.

The Act doesn't say the policy has to be in the OC's name, the Act does not care if the builder takes out the insurance contract.