Question: Is the strata insurance legislation that was introduced in the ’90s still fit for purpose?
Is the strata insurance legislation still fit for purpose? It was introduced in the late 90s, well before the various Brisbane floods and cyclones we had this year. We’ve seen the effects of severe weather impacts on the Northern Queensland insurance market. Is southeast Queensland on a pathway to replicating what’s happened in Northeast Queensland, where people have been forced to have cover that may not be particularly beneficial or result in good outcomes?
Answer: The commissioner is saying, “We’re allowing you to make a reasonable decision”.
I believe the commissioner is saying, “We’re allowing you to make a reasonable decision”. That’s what any person buying insurance does, whether you’re a business owner or a homeowner. You make a decision based on what you think is reasonable in the circumstances.
There are a lot of question marks and ambiguity around this particular topic, but if that’s what the legislation is saying, then it is still fit for purpose. There are potential liabilities. That’s really where there are grey areas that need to be clarified in this legislation, and there could be greater clarity in that.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
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.
About 18 months ago our committee drafted a disaster plan which sits alongside the fire plan. It’s a broad-based plan. It pulls together information on all the services that we may need in case of fire, flood, cyclone, or any damage the building may suffer and cause what to do and who to contact in the event of. Things included are policy numbers for insurance etc. Services that we would use if say, there was a basement flood and required pumping out.
We also looked at using the Roll of Residents along with where they are re-housed to. Something that was looked at is how we would feed and water everyone if that were required, along with if we took in neighbours. While all this may sound like it’s an “over the top” idea, we think it falls into the 5P’s category.
Prior Planning Prevents P{articularly Poor Performance.