Body Corporate Insurance

Building insurance is mandatory under the Unit Titles Act 2022 and forms the foundation of body corporate insurance. Unlike individual house insurance, body corporate building cover addresses the complex shared ownership structure and ensures all units are protected under a single insurance policy.

Because of the unique structure of a property with multiple units owned or leased by different entities or individuals, house insurance and other types of building insurance are not appropriate for multi-unit buildings.

Sometimes referred to as strata insurance, body corporate insurance typically covers the building, common areas and shared facilities of a multi-unit property. It also covers body corporate liability.

Body corporate liability encompasses the legal and financial responsibilities of the committee and corporation of a multi-unit building. This includes liability for shared area incidents, committee decision-making, contract obligations, and compliance with building regulations and the Unit Titles Act requirements.

This committee group can be held liable for injuries or property damage in shared spaces, legal costs from lawsuits and unintentional breaches of certain statutes. Liability insurance, as part of a body corporate insurance package, protects the body corporate against these risks.

Certificates of currency are often required for body corporate annual general meetings, committee documentation, and compliance with management company requirements. We provide these promptly once your policy is in place.

A certificate of currency is proof that you hold a current insurance policy.  

Please contact us once you have accepted your policy and we will arrange for a certificate of currency to be sent to you from your insurer.

Understanding that body corporates often work within annual budget cycles, we offer flexible payment options including monthly instalments to help align insurance costs with body corporate financial planning and cash flow management*.

To request monthly payments, please talk to one of our dedicated Marsh insurance brokers.

*Interest and additional fees may be applicable. Terms and conditions apply.

Body corporates should review insurance annually, particularly when property values change, building improvements are made, or committee structure changes. Major renovations, new amenities, or changes in property use should prompt immediate policy reviews to ensure adequate coverage.

As a rule of thumb, we recommend you review your policy at least once a year. This will ensure your business’s current risk exposures are covered.

But major changes – like business growth, greater work complexity or expanded services – should always prompt an insurance review.

Some insurers need to know about certain changes in accordance with your duty of disclosure. If your business has changed recently, contact the Marsh hospitality team to update your policy.

The Unit Titles Act 2022 requires body corporates to maintain building insurance for full replacement value, covering all units under a single policy. This mandatory insurance must include coverage for the building structure, common areas, and fixtures, with adequate limits to rebuild the entire complex. Failure to maintain proper coverage can result in legal penalties and personal liability for committee members.

Mixed-use developments require specialised body corporate insurance due to their complex risk profiles combining residential and commercial exposures. Coverage must address different occupancy types, varying operating hours, diverse liability risks, and potentially different insurance requirements for commercial and residential sections. Our specialists can arrange integrated policies that protect multiple aspects of mixed-use developments.

Body corporate insurance continues regardless of committee changes, but new committee members should be informed about existing coverage and their responsibilities. Committee member liability protection extends to all appointed members during their tenure. We recommend reviewing coverage whenever significant committee changes occur to ensure all members understand their protection and responsibilities.

Standard body corporate insurance covers shared facilities and common areas, but special events like community gatherings, fundraisers, or facility rentals may require additional consideration. Some activities might fall outside standard coverage, particularly if they involve external participants or commercial activities. We can review your event activities and recommend any additional protection needed.

New Zealand's seismic activity makes earthquake coverage essential for body corporates. We can arrange natural disaster protection covering earthquakes, volcanic activity, tsunamis, and severe weather events. This coverage addresses both immediate damage and extended displacement costs, recognising that multi-unit buildings face challenges during major natural disasters.

Heritage and character buildings often require specialised insurance considerations due to their construction materials, heritage protection requirements, and higher replacement costs. These properties may need agreed-value coverage, specialised restoration provisions, and compliance with heritage restoration standards. Our specialists can assess heritage buildings and recommend appropriate coverage modifications.