Common questions from committees
Is fire insurance really compulsory for our MC/JMB?
Yes. Section 93 of the Strata Management Act 2013 makes it mandatory for the MC or JMB to insure the building against fire and related perils, for at least the reinstatement value. This applies regardless of whether individual unit owners have their own home insurance.
What happens if our MC/JMB is under-insured and there's a fire?
If the sum insured is below the actual reinstatement cost, the payout may be reduced proportionally under average/co-insurance clauses, leaving a shortfall the MC/JMB has to fund — usually through a special levy on all owners. It can also expose the committee to claims of breach of duty.
Who pays for the reinstatement valuation?
Section 94 specifies the cost of the reinstatement valuation is paid out of the maintenance account — it's a standard, budgeted line item, not an optional extra.
Can individual unit owners buy their own fire cover on top of the master policy?
Yes. The master policy taken up by the MC/JMB covers the building and common property. Owners can separately insure their unit's contents and renovations, which typically fall outside the master policy.
What's the difference between JMB and MC insurance duty?
Before strata titles are issued and the MC is formed, the developer and then the JMB carries the insurance duty. Once the MC is established, the obligation transfers to the MC. Either way, the reinstatement-value standard under the Act applies throughout.