Village Guide

Insurance requirements for retirement village operators

Watch to learn who is responsible for insurance when you move into a retirement village under a licence to occupy agreement.

At a glance

This article outlines a village operator’s responsibilities regarding insurance, as per the Retirement Villages Code of Practice 2008.

According to the Code of Practice, a village operator must maintain a comprehensive insurance policy to cover loss or damage caused by fire, accident or natural disaster.

The insurance policy must cover:

  • Retirement village property
  • Capital improvements or additional fittings provided by residents
  • Residential units owned by residents

Insurance must be for full replacement (if available). If full replacement insurance isn’t available, indemnity insurance is permitted, and the operator must clearly communicate what cover is provided.

Additional insurances

An operator may choose to take out additional insurance policies, for example public liability or insurance to cover business interruption. All of a village operator’s insurance policies should be listed in the village’s disclosure statement.

Operators must also:

  • Inform residents whether they pass on any policy excess amounts and if so, in what circumstances.
  • Keep the insurance valuation of all property types up-to-date as often as is required by the insurance policy.
  • Provide residents with a copy of the insurance certificate of currency on request.

Note: Operators are NOT responsible for contents insurance or vehicle insurance

Residents are responsible for contents insurance should they wish to insure contents within their unit, as well as their own vehicle insurance. Both contents insurance and vehicle insurance are optional and residents may take out policies with any provider.

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