New Zealand | Insurance
Body Corporate Insurance: What Must Be Insured
A New Zealand body corporate holds the main insurance policy for the buildings in a unit title development. MBIE's Short Guide says it must insure the property to its full insurable value, and buyers must be told the cover and the excess before they sign.
The short answer
- The body corporate holds a principal insurance policy that covers all buildings and improvements. In some cases owners insure their own units.
- MBIE: the body corporate "must insure and keep insured the unit title property to its full insurable value" and tell the insurer about additions or structural changes.
- The pre-contract disclosure statement must show the insurer, the type and amount of cover, the premium, the excess on any claim and any exclusions.
- MBIE says body corporate insurance does not cover owners' belongings.
The principal policy
MBIE says the body corporate holds a principal insurance policy that "covers all buildings and improvements", and that in some cases owners insure their own units. The Short Guide adds that the body corporate "must insure and keep insured the unit title property to its full insurable value, and must let the insurer know if any additions or structural alterations are undertaken."
We found no rule on how often the property must be valued for insurance on MBIE's pages or in its guides.
What buyers must be told
These items go in the pre-contract disclosure statement for an existing unit, and in the pre-settlement statement for an off-the-plans sale.
- The insurer's name and contact details.
- The type and amount of cover.
- The annual premium.
- The excess payable on any claim.
- Any specific exclusions.
- Where and how the policy can be viewed.
What owners insure
MBIE's Short Guide says body corporate insurance does not cover owners' belongings, and tells owners to "Ask your body corporate chair about the insurance arrangements for your complex and ask for a copy of any insurance documents". A landlord renting out a unit must put an insurance statement in every new tenancy agreement.
Records and disputes
Details of all current insurance policies are on MBIE's list of records a body corporate keeps for at least 3 years. Disputes about how insurance money is spent go to the courts: the District Court up to $50,000 and the High Court above that. The Tenancy Tribunal cannot hear them.
Read from MBIE's Unit Title Services pages, guides and forms (the dates are in the sources below). The government's legislation site could not be opened when we checked on 31 October 2026, so the section numbers here are the ones MBIE names.
Common questions
Who insures the building in a unit title? +
The body corporate, through a principal insurance policy that covers all buildings and improvements. In some developments owners insure their own units.
How much must a body corporate insure for? +
MBIE's Short Guide says the property's "full insurable value", and the body corporate must tell the insurer about additions or structural alterations.
Do I need contents insurance if I have body corporate insurance? +
MBIE's Short Guide says body corporate insurance does not cover owners' belongings. Ask your insurer about cover for your contents.
What insurance details does a buyer get? +
The insurer, the type and amount of cover, the annual premium, the excess on any claim, any exclusions and where the policy can be viewed, in the pre-contract disclosure statement.
Can I see the body corporate insurance policy? +
MBIE tells owners to ask the body corporate chair about the insurance arrangements and for a copy of the insurance documents.
How long must insurance records be kept? +
Documents with the details of all current insurance policies are on MBIE's list of records kept for at least 3 years.
Where do disputes about insurance money go? +
To the courts: the District Court for amounts up to $50,000, the High Court above that. The Tenancy Tribunal cannot hear disputes about how insurance money is spent.
Must the body corporate tell the insurer about changes to the building? +
Yes. MBIE's Short Guide says it must let the insurer know if any additions or structural alterations are made.
Do landlords have insurance duties in a unit title? +
A landlord must put an insurance statement in every new tenancy agreement.
Is there a rule on how often the building is valued? +
We found none on MBIE's pages or in its guides. Ask your insurer and Unit Title Services.
Read next
Official Sources
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