NAT: Are multiple units damaged in one event treated as a single strata insurance claim?

This article discusses the strata insurance excess per event rule and how one excess applies when multiple units are damaged in the same event.

Question: Can the damage to adjacent units from the same insurable event be treated as one claim? If it is preferable to lodge a separate claim for each unit, would the insurance excess apply for each individual unit?

Damage to multiple units in one claim would attract only one excess.

Insurance policies apply excesses per event (not per unit).

So in this instance, the damage to multiple units in one claim would attract only one excess.

In relation to who is responsible for the excess, regulations under the Body Corporate Management Act state that For an event affecting 2 or more lots, or 1 or more lots and common property, the body corporate is liable to pay the excess unless the body corporate decides it is reasonable in all the circumstances for the excess to be paid for by the owner of a particular lot, or to be shared between owners of particular lots, or between the owner of a lot and the body corporate, or between owners of particular lots and the body corporate.

This post appears in Strata News #572.

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.