If the building's Incorporated Owners had building insurance, is the landlord or the tenant entitled to a share of that insurance payout, and how is it distributed among all affected people?

If the building's Incorporated Owners had building insurance, is the landlord or the tenant entitled to a share of that insurance payout, and how is it distributed among all affected people? 

It depends on the coverage of the insurance policy purchased by the building’s Incorporated Owners (IO) and the terms of the policy and whether the insurance covers individual unit owners.  The building insurance purchased by the building’s IO generally covers common areas of the property, such as external walls, staircases and lifts (which are owned by the IO).   

Fixtures and fittings inside individual units are owned by individual owners. The building insurance may also cover fixtures and fittings inside individual units which were originally installed by the developer (for instance, air-conditioning units, flooring installed by developer).  Generally, the IO’s building insurance does not cover interior fixtures and fittings installed by the owners, such as new kitchen benchtop installed during renovations.   

However, whether individual owners are entitled to any of the insurance monies will depend on the terms of the policy, whether the individual owners are also insured, and the Deed of Mutual Covenant.  You may wish to check with the IO and if in doubt, you can also seek independent legal advice.   

Tenants generally have no ownership interest in the building structure and therefore are unlikely to be able to receive any payout from the IO’s building insurance.