I own a home within a strata title village in FNQ with a total of 17 homes. Our current insurance cover is $4,500,000. Are we eligible to be included in the reinsurance scheme?
I own a home within a strata title village where there are a total of 17 homes, our current cover is $4,500,000. We live in FNQ.
Naturally, there are many questions regarding the federal government's reinsurance pool which become effective July 1 2022. Our insurance is not due until November 2022 and getting information from a broker has not been easy, as they don't really look into the reinsuring until 6 weeks prior to renewal. We have been told that we may not be eligible to be included in the reinsurance scheme, so my question is why not?
Properties greater than 50% residential will be eligible under the reinsurance scheme.
Under the Federal Government Cyclone and Cyclone-related Flood Reinsurance Pool, properties greater than 50% residential will be eligible under the reinsurance scheme.
Notwithstanding, insurers are not required to join the reinsurance pool on 1st July 2022.
Large insurers have until December 2023 to have all eligible policies transferred into the pool and smaller insurers until December 2024.
It is possible that some (or all) insurers may not start offering policies under the reinsurance arrangement when it first comes in to effect.
Negotiations are currently underway with insurers and the federal government on the implementation of the reinsurance pool and there have currently been no announcements by insurers on their participation in the reinsurance pool.
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)
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Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.
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