I've recently purchased a unit. After settlement, the vendor has contacted the owners corporation insurer requesting a refund of their insurance policy payment. Does this cancel my insurance?
I bought a unit in a 4 lot strata this year. There does not appear to be any operative owners corporation. The vendor has contacted the insurance company seeking a refund of the owners corporation insurance premium. This policy was taken out prior to the sale of the unit. The full policy was paid for by the previous owner of my unit as she had no contact with the other 3 owners. Once the refund has been paid, the building will be uninsured. What are my options?
If the property has already settled, the previous owner does not have the right to approach the insurer seeking a refund of premiums and you should make contact with the insurer to ensure this does not occur.
No insurer will provide a partial refund for an insurance premium associated with one lot in a property.
The insurer generally will only provide a refund in the event the policy is cancelled in full and this cancellation is authorised by the owners corporation.
If the property has already settled, the previous owner does not have the right to approach the insurer seeking a refund of premiums and you should make contact with the insurer to ensure this does not occur.
The correct way to apportion insurance costs is through the settlement process and the previous owners conveyancer should factor this into the settlement of Owners Corporation money.
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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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