Can we fine the manager for forgetting to arrange our insurance renewal? The mistake cost us a 285% increase in premiums.
After handling the insurance renewal for seven years, our owners corporation manager forgot to renew our building insurance and the policy lapsed. The manager says the previous insurance company won't take us back, and the new quotes have increased by 285%. We have little option but to take what cover we can get since we're currently uninsured.
Can the committee seek compensation from the owner's corporation manager, such as a fine, or can we report them for their costly error?
If the strata manager was acting as an authorised representative of a broker or insurer, there might be avenues to address concerns by referring a complaint to the Australian Financial Complaints Authority.
Tyrone Shandiman, Strata Insurance Solutions:
Many insurers prefer not to provide quotes after the due date, citing various reasons. This poses a challenge however there are a few things I would suggest.
Firstly, have the strata manager provide a detailed list of insurers approached and the reasons for the declines.
In my professional opinion, the lapse in cover and a substantial increase in premiums merits a second opinion. Consulting another broker could provide valuable insights and potentially uncover alternative solutions. This approach ensures that the best interests of the owners corporation have been considered.
If the strata manager was acting as an authorised representative of a broker or insurer, there might be avenues to address concerns by referring a complaint to the Australian Financial Complaints Authority. I would suggest seeking advice on this when you speak with an alternate broker.
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.
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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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