This article discusses strata insurance excess cover for owners and why individual owners usually cannot insure against a high water damage excess.
Question: Our strata insurance policy carries a claims excess of $10,000 for water damage claims. Can an owner insure against this excess?
My unit is within a relatively large single tier strata complex. Because of the claims history, the strata insurance policy carries a claims excess of $10,000 for water damage claims (including storm damage). This is an exceedingly high excess for a unit owner to face if they have to lodge a claim. Is insurance of the claims excess on a strata insurance policy available for an individual unit owner?
Answer: There are no excess buydown options in the strata space for claims like this.
Unfortunately there are no excess buydown options in the strata space for claims such as this.
In this instance, the best thing you can do is proactive maintenance of your property to prevent insurance claims. This includes roof maintenance, checking flexi hoses for signs of wear, maintaining shower recesses, and addressing any specific issues impacting water damage.
This should be encouraged across the entire complex to reduce claims history and put the owners in a better negotiating position to reduce the excess.
This post appears in the February 2025 edition of The NSW Strata Magazine.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
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