Building insurance

Hello Jimmy

On 20 August I posted a question about the valuation for which our strata buildings should be insured as follows:

My request was as follows:

 Our strata property consists of 19 lots consisting of 3 commercial units (separate building), a unit block of 6 units with garages at ground level (separate building) and 10 townhouses. According to the Act the OC has to insure its buildings for at least the latest valuation, which in our case was done November 2013. My interpretation of the Act is that if our building(s) are destroyed we are compensated by the amount of cover, which doesn’t necessitate rebuilding the same as was destroyed. Our strata plan covers a relatively large block of land in the inner city where, over the last 15 years, all but a few blocks like ours, are now highrise. In all likelyhood this will happen to our land in due course. The question is: do we have to take into account CPI increases or other cost increases when taking out insurance or can we, legally, insure at the latest valuation for, say, the next 5 years?

I would like to get a comment to share with the EC.

Thanks

Jef