What options do owners in a large strata scheme have if strata insurance is withdrawn due to poor maintenance in one building?
We live in a large strata scheme with multiple accommodation buildings. Most buildings are well maintained, one is not. The scheme’s strata insurance has been qualified for two years in a row because repairs and maintenance have not been carried out on the poorly maintained building.
If the insurer withdraws cover, what options are available to owners who live in the well maintained buildings?
If insurers refuse, the strata company needs to rectify the issues, making the property insurable so cover can be reinstated.
Under the Strata Titles Act 1985 (WA) (the Act), the strata company must insure all buildings. If the strata company cannot obtain insurance, they are technically in breach of the Act.
In practice, brokers will try to place cover with alternative insurers (often with higher premiums or exclusions). If insurers refuse entirely, the strata company or lot owners usually need to rectify the issues, making the property insurable so cover can be reinstated.
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 and the specific coverage afforded under their policy wording. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet 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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