If an owners carries out substantial renovations without seeking approval from the owners corporation, does this affect our strata insurance?
One of the owners in our black of 4 units carried out renovations, adding an extra bedroom in the roof space. They did not seek any approval from the owners corporation. They are now selling the unit.
Do the unapproved renovations affect our strata insurance? How do we resolve this.
Strata insurance is designed to factor in that owners will renovate their property from time to time.
Strata insurance covers building improvements, fixtures and fittings and does not require those items to be approved by the Owners Corporation in order for cover to apply. The owner just needs to demonstrate the property meets the definition of “insurable property” or “building” in accordance with the insurers Product Disclosure Statement.
Therefore, the owners unapproved renovations do not impact insurance as such – but for the following exceptions:
- The renovations result in claims; or
- The renovations require the building sum insured to be increased to cover the additional cost of those renovations. Even in such instances, an additional cover under some policies for “Lot Owners Fixture & Fittings” is designed to cover this shortfall.
Strata insurance is designed to factor in that owners will renovate their property from time to time.
Log in to your existing Lookupstrata Account to download the printable file.
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.
Lookupstrata Directory
Looking for VIC Strata Specialist in your area? Search within our LookUpStrata Directory for the best list of contacts available
Search the directory
Comments
Log in to leave a comment