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Sorry, which state are you in?
If I have assisted you with a previous question, my access to it is closed so I need to confirm your situation from scratch or else risk confusing your situation with other matters.
I appreciate your patience.
Section 178 and 179 of the following regulations governing body corporate and community management schemes make it clear that the body corporate MUST insure the building and any common property.
Assuming your are generally managed under a body corporate arrangement, which is the case in most properties the body corporate has no legal option but to take out such insurance and if it fails to do so it can be sued by any of the unit holders, and if the problem is only that one unit holder is not paying their fees that have been lawfully levied for such purposes, then the body corporate can and will ultimately be obliged to take legal action against the lot owner to recover outstanding funds and the costs of such action will generally be claimable against the lot owner who failed to pay.
I would suggest you raise these points with the other owners and indeed with the owner who is refusing to pay, as once everyone understands the legal reality the issue the lot owner will hopefully see sense and back down.
I trust the above assists.
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