Jount Buiding Insurance

[bshatttock]

Hello

our complex has updated the Communal Proprty Insurance to a Joint Building Insuranc.One owner is not happy about this and wishes to "Opt Out" and use there own private building insurance and not contribute to the complex building insurance,Is this possible / allowable ?
Regards
Barry Shattock

[Nigel Howarth]

Hi Barry

No - the owner can't opt out of contributing to the building insurance.

The law states that "The owners of all the units shall participate in the expenses which are necessary for the insurance, maintenance, repair, restoration and management of the jointly-owned property..."

Regards,

[bshatttock]

Thanks Russel

this is the owners reply to your statement.Would you like to comment ?
She is refering to the indidual Insurance cover isued from our brocker after updating the complex insurance to a Joint Building Insurance
Regards Barry

We can bat emails back and forth all day long on this issue. I think however the problem is to do with the misinterpretation of the highlighted sections you sent me. This rightly states that the management committee must insure and always keep insured THE JOINTLY OWNED BUILDINGS against the listed perils. However the management committee do not own the floors, ceilings nor internal walls of our property. Neither do they own any of the internal fixtures and fittings so these do not fall within your scope to insure.
The community DOES own roofs, external walls, stairwells, pool, exterior lighting and many other things too long to list here and these are the things covered by the immovable property act and therefore need to continue to be insured on the community property. Please feel free to contact me by telephone if you have any questions.

Just to reiterate we have asked the broker to remove us from this block policy and they have agreed to do so.

We are not against a block policy in principle however the policy put in place by the committee is severely lacking in the protection it affords and the excesses are so high it makes it almost impossible to recover the costs of many claims. Should at any time in the future a more suitable level of cover be put to the owners to vote for or against then we would willing consider it. For the time being we will continue with our own insurance.

[Nigel Howarth]

Who's Russel?

The Jointly-Owned Building includes everything within the boundaries of the complex. It's buildings insurance you need to make their own arrangements for insuring their contents.

I published an article on the subject more than two years ago - You have insurance but are you insured?.

And I suggest you send the following publication to the belligerent owner - Insuring Buildings under Joint Ownership (EVERYTHING you need to know about the insurance of jointly-owned buildings. By Miltiades Miltiadou – Independent Insurance and Risk Management Consultant.)

Here's an extract:

The Management Committee has an obligation under the law to insure and always keep insured the jointly-owned building against fire, lightning and earthquake with a licensed insurance company and to pay the premium.

It is underlined that the obligation under the law is to insure the entire jointly-owned building and it is not limited only to common areas or the jointly-owned property. This provision is aiming at avoiding doubts and misunderstandings between insurers and insureds.

Regards

[bshatttock]

Sorry NIGEL!

[Pantheman]

The committee is responsible to insure the jointly owned property as per the law. This owner has to comply and pay towards it. However, she/he can have their own insurance for the internals of their apartment as a separate insurance, but cannot be isolated from the main jointly owned property insurance.

A broker cannot remove any individual person from such a policy, this is total BS.

In case of a catastrophic event, does the block get rebuilt 'without' the said apartment, Lol. I have never heard of such nonsense.

[Nigel Howarth]

Thanks Pan

I didn't explain very will that the owner who's refusing only needs to get insurance for the contents of their apartment.

It's also worth noting that their contribution towards the cost of insuring the jointly-owned building will be less than taking out their own buildings insurance.

Regards,