NSW & QLD: Strata insurance claims and emergency preparedness after Cyclone Alfred

After the impact of ex-Tropical Cyclone Alfred on southeast Queensland and northern New South Wales, many strata communities face strata insurance claims and other challenges. This article address some of these issues, helping owners, committees, and strata managers to understand their responsibilities and the steps involved in the recovery process.

Following the significant impact of ex-Tropical Cyclone Alfred on southeast Queensland and northern New South Wales, many strata communities are facing strata insurance claims and other challenges. To address these issues, LookUpStrata hosted a crucial webinar titled “NSW & QLD: Aftermath of Cyclone Alfred: Essential insights for strata communities”. This session aimed to provide essential insights for owners, committees, and strata managers to understand their responsibilities and the steps involved in the recovery process. The panel of experts included Bruce McKenzie from Sedgwick, Tyrone Shandiman from Strata Insurance Solutions, and Will Marquand from Tower Body Corporate, each offering their unique perspectives on navigating the aftermath.

NSW & QLD: Aftermath of Cyclone Alfred: Essential insights for strata communities | Bruce McKenzie, Sedgwick + Tyrone Shandiman, Strata Insurance Solutions + Will Marquand, Tower Body Corporate – March 2025

The session covered several key areas designed to equip strata communities with the knowledge to effectively manage the aftermath of an emergency. Discussions encompassed the tracking of insurance claims and the common challenges encountered by policyholders. Insurers received a significant number of strata insurance claims after ex-Tropical Cyclone Alfred from policyholders across southeast Queensland and northern New South Wales. This number is expected to rise. The ICA also declared an Insurance Catastrophe, prioritising the industry’s response for affected policyholders.

The webinar also addressed the crucial distinction between damage covered by strata insurance policies (such as cyclone damage under standard policies) and damage that might be considered maintenance or otherwise not covered, like gradual deterioration or lack of maintenance. Common building elements particularly vulnerable to damage following severe weather events were highlighted, along with common exclusions in strata insurance policies relevant to cyclone aftermath, with a note that flood cover might be optional. The implications of the Cyclone Reinsurance Pool for strata properties post-Alfred were also discussed.

The importance of effective communication when dealing with strata emergencies

Effective communication with residents throughout the repair process, especially regarding potential delays and the scope of work, was emphasised as a vital aspect of managing a crisis. The panel underscored the importance of keeping residents informed and managing expectations during a challenging time.

A number of pertinent questions were addressed during the webinar. These included understanding the common reasons for delays in the insurance claim assessment and approval process following widespread damage from ex-Tropical Cyclone Alfred, and how owners and committees could proactively address these delays. Another key question focused on how owners and committees could effectively differentiate between damage covered by their strata insurance (e.g., cyclone damage) and damage considered maintenance or not covered.

For strata buildings experiencing strata insurance claims for water ingress or other damage after Cyclone Alfred, the webinar offered practical steps for owners and strata managers:

Document the damage: Where possible, document any damage with photos and videos. Create a list of damaged items, including the brand, model, and serial number if you can. Keep records of communications, including phone calls, text messages, and emails.

Begin the clean-up: You don’t need to wait for your insurer to assign an assessor before starting the clean-up. Dispose of items that cannot be repaired, especially if they pose a health risk. If you believe something can be repaired, keep the item and inform your insurer when making your claim.

Speak to your insurer: Lodge your claim as soon as you can, even if the full extent of the damage isn’t yet known. Contact your insurer directly before attempting or authorising any building work.

Strata committees should communicate effectively: Keep residents informed about the progress of insurance claims, repair timelines, and any potential delays. Designate a site contact and establish an information hub for residents during larger emergencies.

Expedite insurance claims: Following a catastrophe declaration, owners and strata committees should take practical steps to expedite the insurance claim process and ensure timely assessment of damage. This includes providing comprehensive documentation and maintaining clear communication with the insurer.

To help buildings get ready for the next emergency situation, the experts emphasised several preventative measures:

Regular maintenance: Ensure stormwater and water systems are well-maintained, with drains cleared and surcharge paths unobstructed. Consider more frequent building inspections and address minor issues proactively.

Financial preparedness: Maintain adequate funds in the sinking fund to enable swift action for repairs and emergency measures.

Forward planning: Committees should engage in forward planning to assess the building’s resilience to intense weather events and develop emergency response plans. This includes having communication templates, evacuation plans, and lists of essential contacts readily available.

Engage licensed contractor: Always use licensed and reputable contractors for any repair work and verify their credentials.

Record keeping: Maintain comprehensive records of maintenance, communications, and actions taken during and after emergencies.

In conclusion, the LookupStrata webinar on the aftermath of Cyclone Alfred provids crucial and timely insights for strata communities grappling with the impact of the event. By understanding the insurance process, taking proactive steps in the recovery, and implementing preventative measures, strata owners and committees can navigate the current challenges and build greater resilience for future emergencies.

This post appears in Strata News #736.