This NSW article about insurance requirements in strata has been supplied by Tyrone Shandiman, Strata Insurance Solutions.
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- QUESTION: We run a SEPP 55, over 55’s independent living strata titled retirement village with 104 properties. Do we need special property insurance because we are a retirement village?
- QUESTION: Does Insurance cover any structure that is not compliant with the BCA or any damage from fire that emanates from that structure?
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Question: We run a SEPP 55, over 55’s independent living strata titled retirement village with 104 properties. Do we need special property insurance because we are a retirement village?
We run a SEPP 55, over 55’s independent living strata titled retirement village with 104 properties.
Is there any reason why we need special property insurance because we are a retirement village?
As property insurance only relates to the property, can standard strata insurance apply rather than us being in a special class and potentially more expensive class grouped with Aged Care?
Answer: It can sometimes be more appropriate to insure under a strata policy, but it can sometimes be more appropriate to not.
It does depend on the insurer and what the insurance guidelines are. It can sometimes be more appropriate to insure under a strata policy, but it can sometimes be more appropriate to not.
With retirement villages, I do know that some strata insurers don’t insure retirement villages, and in that case, it might be more appropriate that the village is placed on a separate property policy with an insurer that does insure retirement villages.
It is an individual, case by case situation whether it’s appropriate to ensure with strata or separately. What the broker should be doing is at least canvassing all the strata opportunities with all the strata insurers, and also others and reporting to the committee or the owners Corporation: ‘Here are the results of the quotes that we’ve sought’.
Tyrone Shandiman
Strata Insurance Solutions
T: 07 3899 5129
E: [email protected]
This post appears in Strata News #408.
Question: Does Insurance cover any structure that is not compliant with the BCA or any damage from fire that emanates from that structure?
Does Insurance cover any structure that is not compliant with the BCA or any damage from fire that emanates from that structure?
I’m in NSW and I live in a block of 8 villa units. The unit next door to me has put a roof on a car port on the boundary with me. They have then put on solar panels and an inverter, which overheats. I live in fear of not being properly insured.
Is it is unlawful to put a roof to the boundary unless there is also a fire wall? Our Strata management has been no help.
Answer: Insurers do not give advice on whether a building is compliant.
I’m going to quote one of the most widely used policies out there in the market. Insurers do not give advice on whether a building is compliant. They will only assess compliance of building codes at the time of a claim, and determine if that meets one of the policy exclusions or not.
There are three major exclusions that owners should be aware of:
- insurers do not pay for the cost of replacement, for the cost to rebuild, replace or repair illegal installations (so they don’t cover the installation itself).
- They do not cover damage caused by non rectification of a property defect error or omission that you were aware of, or should have been reasonably aware of.
- they also do not cover the cost of rectifying the faulty or defective materials or faulty or defective workmanship design or specification.
I think there are some exclusions that might apply to that situation. I guess it comes down to knowledge of the defects. Who is saying that this property isn’t defective? Is it a lot owner that may not fully understand the legislation and the building codes? Or is there an engineer or builder that’s pointing it out to the body corporate or owners Corporation as being a defective structure?
If the owner doesn’t feel that the issue is being addressed, as always try and resolve the issue with the committee and an owners Corporation without it being a conflict. There are always dispute mechanisms available through NCAT if you don’t feel that you’re getting satisfactory responses from the owners Corporation.
Tyrone Shandiman
Strata Insurance Solutions
T: 07 3899 5129
E: [email protected]
This post appears in Strata News #389.
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 Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
Have a question about insurance requirements in strata or something to add to the article? Leave a comment below.
Read next:
- NSW: Q&A How Often Do We Need to Have an Insurance Valuation?
- NSW: Q&A How Many Storeys is my Building (Home Warranty Insurance)?
- NSW: Owners Corporations, Common Property Repairs and Insurance – A Tricky Relationship
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