Question: Can my neighbour exclude me from accessing the insurance Policy?
Can my neighbour exclude me from accessing the insurance policy.
We have a dispute over a fence and he hasn’t put my name on the policy and says if I need to claim regarding the fence he won’t process it. He rents his duplex out but the policy says 100% owner-occupied.
Answer: As a party with an insurable interest in the policy, you are entitled to lodge a claim on the policy and the other owner is not able to stop you from doing so.
When you purchase a strata property, the owners corporation are responsible for insuring the building. The insurance policy includes insurance for lot owners property and lot owners contribute to the costs of the policy, thus meaning they have an insurable interest in the policy.
As a party with an insurable interest in the policy, you are entitled to lodge a claim on the policy and the other owner is not able to stop you from doing so.
If the other owner seeks to restrict access to the policy, my recommendation is to deal directly with the insurer and ask to lodge a claim.
Should the other owner seek to block your attempts to claim on the policy or if the insurer initially refuses your ability to claim on the grounds you are not an authorised party, you should be able to enforce your insurable interest in the policy by going through the insurers dispute resolution process.
The Strata Management Act does not give an owners corporation the ability to restrict a party that has an insurable interest from lodging a claim.
In the course of assessment, the insurer will need to determine whether the damage is covered (or excluded) by the policy – this happens after the claim is lodged.
This post appears in the February 2021 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.