Building maintenance supports the appearance, functionality and condition of a body corporate building. It also helps reduce practical risks and clarify responsibility when damage occurs.
Does building maintenance affect body corporate insurance?
Maintenance can affect insurance-related decisions, but it does not automatically mean premiums will increase or a claim will be denied. The outcome depends on the scheme, the circumstances of the damage and the insurance policy.
A body corporate must generally insure common property, body corporate assets, public risk and, in most cases, buildings containing lots. Owners contribute to the cost through the body corporate’s administrative fund.
Maintenance remains important even when available guidance does not establish a direct link between poor upkeep and a particular premium, exclusion or claim outcome. For more background, see our body corporate insurance factsheet.
What maintenance is the body corporate responsible for?
The body corporate and lot owners share maintenance responsibilities. The correct division depends on the scheme’s registered survey plan and the regulation module stated in its community management statement.
A body corporate must maintain common property in good and structurally sound condition. A lot owner must maintain their lot in good condition. Maintenance can also include work needed to prevent damage, such as addressing termite risks.
Consider common property, body corporate assets and individual lots separately. A lot owner may be liable if poor lot maintenance causes damage to another lot or common property. A body corporate may also be liable if inadequate common-property maintenance results in damage to a lot.
If you are unsure who is responsible, check the registered survey plan, community management statement and applicable regulation module before arranging work.
Which maintenance problems can create insurance and safety concerns?
Poor maintenance increases the risk of accidents, injuries and property damage. Examples include:
- slip hazards in shared areas
- electrical faults
- water leaks
- fire risks
- structural failures
- damage caused by pests or dampness.
These issues may also affect whether damage involves a lot, common property or a body corporate asset. That distinction can influence who needs to arrange repairs and how an insurance claim or excess is managed.
Insurance policies can cover damage and the costs of reinstating or replacing insured buildings, including some professional fees and debris removal. The policy must return insured property to new condition.
Do not assume that maintenance concerns automatically change the insurance result. Check the current policy and speak with the insurer or broker about the specific issue.
What should a body corporate inspect and repair?
Bodies corporate should arrange routine inspections and address repairs promptly. They should maintain common property and engage suitable contractors when specialist work is needed.
A practical maintenance program may include checking:
- roofs, gutters and external walls
- common walkways, stairs and handrails
- plumbing, drainage and signs of water entry
- electrical infrastructure and lighting
- fire safety equipment
- areas affected by termites, mould or dampness
- pools, gardens and other shared facilities.
Keep lot-owner responsibilities separate from common-property work. Our body corporate maintenance factsheet provides further guidance on this distinction.
How should maintenance issues be recorded and prioritised?
Record the issue, its location, the date it was identified and any immediate action taken. Photographs, inspection reports, quotes and contractor recommendations can help the committee understand the problem and track progress.
Prioritise issues that may cause injury, property damage or further deterioration. The committee should also consider whether temporary controls are needed while a permanent repair is arranged.
Maintenance and insurance costs need to be included in the body corporate’s finances. A body corporate must prepare administrative and sinking fund budgets each financial year, and owner levies depend on those budgets.
What should you check with your insurer or broker?
Ask your insurer or broker:
- what the policy covers for the affected building, common property or asset
- whether the proposed repair or improvement needs to be disclosed
- what information is needed before making a claim
- how the excess may apply
- whether any policy conditions relate to the issue.
Owners must tell the body corporate about improvements or changes that could affect the insurance premium, including improvements to their lot or common property for their benefit. This should be done as soon as possible after the improvements are made.
Who pays an excess depends on the circumstances. Where damage results from inadequate common-property maintenance, it may be reasonable for the body corporate to pay the excess. See our guide to who pays the body corporate insurance excess.
Good maintenance supports safer common property, clearer responsibilities and better-informed insurance decisions. If you need help reviewing your body corporate’s maintenance or insurance arrangements, contact us at reception@stratacare.com.au.
