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The owner of each lot that is included in the Scheme is liable to pay a contribution levied by the body corporate that is a proportionate amount of the premium for a policy of insurance taken out that reflects the interest schedule lot entitlement of the lot.
For a building format plan lot the proportion is considered to be the interest schedule lot entitlement of the lot. For standard format plan lots it may be the value of the building on the lot. Consequently owners of these standard format plan lots must advise the body corporate of the value, or any changes in value.
For lots in a building format plan, if there are improvements undertaken to the lot that increase the value of that lot, then the owner must advise the body corporate so the insurer can be placed on notice and the insurance adjusted accordingly. The owner will pay any extra premium incurred.
Similarly, if the owner of any insured lot has a change of use of that lot that may impact on the insurance (e.g. a fireworks manufacturer moves into the lot consequently increasing the risk) then they must also advise the body corporate so that the insurer may be placed on notice and the policy may be adjusted if appropriate. The owner will be responsible for any increased premium.
