Flood Insurance?

Deliberating over whether to opt for Flood Cover is something many Bodies Corporate and their Committees agonise over. This article and Adjudication may make that decision easier.

In relation to flood cover, whilst some may consider the legislation specifics not quite prescriptive enough in regards to flood insurance requirement, one Adjudicator deemed it to be a requirement – particularly as the Scheme concerned was in a designated flood area i.e. property had been affected in earlier times.

The Adjudication was:

Winnipeg Grange [2013] QBCCMCmr 278(8th July 2013)

In the Order, the Adjudicator commented as follows:

“The Legislation requires the Body Corporate to have sufficient insurance cover to replace or reinstate any of the relevant areas of Scheme land to the condition that they were in when new, in the event that they are damaged. I consider that, without specific Flood Insurance in place, there will be insufficient insurance to satisfy the legislative requirements.

I am further satisfied that it would be unreasonable to fail to obtain Flood Cover over the property, given that the scheme is located in an area identified as a flood risk.

For these reasons I am ordering that the Body Corporate will obtain Flood Insurance.”

You can read the Adjudication in full HERE.