Section 84
Insurance where area cannot be separated from main premises of building
of Strata Management Ordinance, 2019
—
Where any limited common property is managed and maintained by a subsidiary management corporation, and the areas managed and maintained by the subsidiary management corporation cannot be separated from the main premises of the building maintained or managed by the management corporation—
(a)
the management corporation shall insure the building under a damage policy; and
(b)
the premiums paid for such insurance shall be apportioned between the subsidiary management corporation and the management corporation in accordance with the share units of the subsidiary proprietors constituting the subsidiary management corporation against the aggregate share units of
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the subsidiary proprietors constituting the management corporation.
(2)
For the purpose of this section, “cannot be separated from the main premises of the building” means that the area managed and maintained by the subsidiary management corporation does not exist as an independent structure, and any damage to the structure or its facilities will materially affect the existence or usability of all other structures within its vicinity.