Insurance Law Reform Act 1985

15 Prohibition on inclusion of pro rata condition of average in contract of insurance relating to dwellinghouse

(1)

No contract of insurance relating to a dwellinghouse or to any of the contents thereof or to both shall contain a pro rata condition of average.

(2)

Any provision of any contract of insurance that contravenes subsection (1) shall be of no effect.

(3)

In this section dwellinghouse means a building or part of a building occupied or intended to be occupied as a separate dwelling; and includes any outbuildings used primarily for domestic or residential purposes.

(4)

The application of this section to any contract of insurance relating to a dwellinghouse shall not be excluded by reason only that part of the premises is used as a shop or office or for business, trade, or professional purposes.