Building insurance provides compensation for financial loss in the case of death, injury, destruction, or damage accidentally incurred through management of buildings, thus lowering the risk to be borne by the management body and owners of a building.
It is common for individual owners to take out insurance policies for their units and personal assets in a building. However, insurance covering common parts and facilities (such as lifts, staircases, fire service installations, etc.) of the building should be taken out by its management body so that the insurance company will pay compensation accordingly for the loss incurred.
Without building insurance, the owners will have to raise money to pay for the loss incurred. This may cause delay in repairs and lead to disputes among owners. In the meantime, greater mishaps may happen.
For peace of mind, developers, apartment owners, and property management companies should be aware of the importance of insurance coverage to have appropriate application for their properties.