What can a North Queensland body corporate do if the BCCM requires insurance but affordable cover is unavailable?

By Admin LUS,

Our committee has gone to the BCCM to organise an Alternative cover for our 46 units plus restaurant, but were told they had to have an insurance in place.

We are now paying $355,000 for no cover for cyclones, storms or flood which in North QLD is a must. We are also paying a separate policy for public liability.

A full coverage was over $600,000 but this was dismissed by the Secretary.

Where to go from here?

Is a FNQ strata title village eligible for the federal government's cyclone reinsurance scheme?

By Admin LUS,

I own a home within a strata title village where there are a total of 17 homes, our current cover is $4,500,000. We live in FNQ.

Naturally, there are many questions regarding the federal government's reinsurance pool which become effective July 1 2022. Our insurance is not due until November 2022 and getting information from a broker has not been easy, as they don't really look into the reinsuring until 6 weeks prior to renewal. We have been told that we may not be eligible to be included in the reinsurance scheme, so my question is why not?

What can FNQ lot owners do when high insurance costs mean building maintenance is being neglected?

By Admin LUS,

Strata Insurance Issues in Far North QLD (FNQ).

Insurance is so high, body corporate committee's are not doing sinking fund forecasts and if they are doing them, they are ignoring the recommendations in the sinking fund report. A vast majority of levies is going to insurance. In FNQ, insurance for a block of 21 units is around $110K so, to keep strata fees down, garden maintenance is cut, building maintenance is cut etc.

As a lot owner, I'm concerned about where this leaves us. What can we do?

How can small strata schemes in FNQ navigate high insurance premiums and large cyclone excesses?

By Admin LUS,

In FNQ, a severely limited number of insurance companies are willing to insure strata buildings because of the risk of cyclone and flood events. The pool of insurers becomes even more restricted for small strata complexes.

We have one insurance company available, and they charge enormous premiums and $100K excess charges in the event of a named cyclone and/or storm surge flooding.

How can we reach a broader base of companies willing to insure small strata schemes in FNQ?

Does it constitute a conflict of interest if the strata manager is the child of a lot owner?

By Admin LUS,

I have just discovered that the strata management company for my 10 unit block is actually the family company of one of the owners in the block (the owner who has the greatest unit entitlement). The strata company is managed by this owners child.

Does this constitute a conflict of interest and should it have been declared? I bought into the block just over 12 months ago.

Is it a conflict of interest if an EC treasurer works part-time at the strata management company?

By Admin LUS,

I have recently discovered a member of our EC, the treasurer, has commenced working two days a week at our strata company potentially in an accounts role.

Is this a conflict of interest?

I feel the member is now unable to act in the committee's best interest as they are now on the payroll of the strata management company. I'm most concerned of all situations where we are unhappy with something strata has done. I also feel payments now can't be approved by this member.

Is it a conflict of interest if a strata committee member takes over the building's cleaning contract?

By Admin LUS,

A committee member would like to take over the cleaning contract for our building. The strata committee has requested they withdraw from the committee as this as a conflict of interest. What section of the Act refers to this?

Is it a conflict of interest if a committee member is employed on a permanent basis as the building's cleaner?

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