A lot owner is challenging our strata insurance valuation as being too high
One of the owners in our group is challenging our current valuation as being too high. He believes properties here in WA haven’t risen in value for several years.
Our insurance broker obtained quotes from a range of insurers and we (the council of owners of a self-managed strata group) believe we have obtained a good deal. It would cost more to get a full valuation than if we just paid the extra suggested in the current valuation. This would be around $60/unit/year. Is this a fair response to this owner?
Ensure you've demonstrated that you've done your due diligence.
As a strata Corporation, the best way to overcome any challenge by an owner around whether you're doing the right thing is to ensure that you've demonstrating that you've done your due diligence.
A strata Corporation should have a valuation done for the building, which would be the basis on which you insure the building for. If you've got a valuation, and an owner is challenging the valuation, what I would want to know as a committee member is 'Where are your workings and who have you consulted that has a higher level of qualification?' then 'Who has the committee consulted?', So that's the first question I'd want to know.
If there's no valuation, I think it would be a fair and reasonable thing to get a valuation done. For a property with 12 lots, I've seen valuations, through companies like Leary & partners. They come in at around the $500 to $700 mark. If you don't have a valuation, do your due diligence and get one done.
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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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