Residential owners should be aware the residential building cap covered by EQC has been increased from 1 July 2019 to $150,000 (plus GST). This is up from the previous base of $100,000. The increase will be helpful in natural disasters where comparatively minor damage occurs. In circumstances where a total loss arises then the EQC cap will invariably need to be topped up by natural disaster cover under the Body Corporate’s material damage policy. The top-up for natural disaster is already included in all Boutique policies.
As with any change in cover, the premium increases and EQC’s take will go up from $200 plus GST per unit to $300 plus GST. This will be reflected in insurance renewals from 1 July 2019. In theory the insurer’s premium should reduce to reflect the increase in EQC cap – time will tell.