Enter your email Address

  • Home
  • What is strata?
    • Strata Legislation
    • What is Strata?
    • Strata Property Basics: Strata Owners Corporation
    • Strata Finance
  • Strata Topics
    • Strata Information By State
      • New South Wales
      • Queensland
      • Victoria
      • Australian Capital Territory
      • South Australia
      • Tasmania
      • Western Australia
      • Northern Territory
    • Strata Information By Topic
      • COVID-19
      • By-Laws & Legislation
      • Smoking
      • Parking
      • Noise & Neighbours
      • Insurance
      • Pets
      • Your Levies
      • New Law Reform
      • Maintenance & Common Property
      • Committee Concerns
      • NBN & Telecommunications
      • Building Defects
      • Renting / Selling / Buying Property
      • Strata Managers
      • Building Managers & Caretakers
      • Strata Plan / Strata Inspection Report
      • Apartment Living Sustainability
  • Blog
    • Newsletter Archives
  • The Strata Magazine
    • The NSW Strata Magazine
    • The QLD Strata Magazine
    • The VIC Strata Magazine
    • The WA Strata Magazine
  • Advertise With Us
    • Site Sponsors
    • LookUpStrata Site Advertising
    • Your Own Branded Newsletter
  • About Us
    • Testimonials for LookUpStrata
  • Help
    • Ask A Strata Question
    • Q&As – about the LookUpStrata site
    • Sitemap

LookUpStrata

Australia's Strata Title Information Site

Whitbread Insurance Brokers
Australia's Top Property Blog Dedicated to Strata Living
You are here: Home / Defects / Defects QLD / QLD: Q&A Insurance Increases Due To (Safe) Cladding

QLD: Q&A Insurance Increases Due To (Safe) Cladding

Published October 17, 2018 By Tyrone Shandiman, Strata Insurance Solutions Leave a Comment Last Updated November 23, 2019

Sharing is caring!

4shares

This response to a lot owner’s question about cladding insurance issues such as insurance increases due to the presence of certified safe cladding has been supplied by Tyrone Shandiman, Strata Insurance Solutions.

Question: Our insurance has doubled over the past 12 months. We think this is to do with cladding insurance issues as we have a green board cladding, which has been certified as safe, on our buildings. Is there some sort of lobby group tackling this?

GET THE LATEST STRATA NEWS / ARTICLES DIRECT TO YOUR INBOX HERE

I live in a complex on the Sunshine Coast, and our insurance has doubled over the past 12 months. I suspect the reason for this is cladding insurance issues as we have a green board cladding on our buildings.

Even though we have a letter from the manufacturer and a certificate from Warrington fire to say that it is a safe product, we are still being shafted. Also, these products are all Australian standard products.

Is there any noise being made to the Government and Insurance companies about this situation. I would think that we are not the only complex with this problem.

I was hoping there was some sort of lobby group or action committee to tackle this outrageous situation around cladding insurance issues.

QLD Mag Banner

Answer: This seems to be the norm for buildings with cladding.

We have seen increases for buildings with cladding by up to four times the previous year offered by some insurers. Unfortunately, the circumstances advised by the questioner is certainly not an isolated circumstance, but more so what is we have noticed as the norm for buildings with cladding.

We put the increases down to losses from claims that insurers have already had and uncertainty over how non-combustible the product actually is. This uncertainty means insurers price a policy more conservatively to factor in the unknown risk.

In July 2017, a senate committee asked Wade Martin an Alucobond supplier about standards for non-combustible cladding his answer was “The standard is AS 1530, part 1. There is no such thing as a panel that passes AS 1530 part 1 as the product would be supplied.” In August 2017 ABC’s 7:30 Report also raised questions over flammable cladding products.

We are not aware of any lobby group or action committee that are specifically addressing the high cost of insurance for buildings that contain cladding, however, governments are starting to take action to address the cladding issue.

The Queensland government has recently legislated the Building and Other Legislation Cladding Amendment Regulation 2018 which requires buildings to register their building and engage professionals to inspect the building and where there is cladding complete a risk assessment.

We are of the view that premiums may start to decrease when:

  • claims resulting from cladding decrease;
  • there is better understanding of how combustible/flammable the products are;
  • buildings adopt risk management of properties with cladding to minimise the chance of a major claim;
  • Insurers can demonstrate the premium charged is appropriate – capitalism at the end of the day will ultimately determine the direction of where premiums end up.

Owners should also seek alternate quotes from the market.

Below is a history of known fires where there has been a direct connection with the use of ACP.

1991 – Liverpool, UK

1999 – Garnock, Scotland

2004 – Television Cultural Ctr, Beijing, China (7 Injured)

2010 – Shanghai, China (58 dead / 70 Injured)

2012 – Saif Belhasa Building, Dubai (2 Injured)

2012 – Tamweel Tower, Dubai

2014 – Lacrosse, Melbourne, Australia

2015 – The Torch, Dubai

2015 – The Torch, Dubai

2016 – The Address, Dubai

2017 – Grenfell Tower (71 Dead / 70 Injured)
Embed

Read Next:

  • Safer Buildings: understanding the combustible cladding legislation
  • Queensland cladding laws: The cladding bus has left the station
  • Could Intumescent paint be a solution to the cladding fiasco?
  • Q&A Can non-fire rated Aluminium Composite Panels comply with National Construction Code
  • Strata Finance: The guide for Owners Corporations

This post appears in Strata News #213.

Tyrone Shandiman
Strata Insurance Solutions
T: 07 3899 5129
E: [email protected]

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. This information is designed as a basic guide with relation to cover and you should refer to your Policy Schedule and Product Disclosure Statement for all terms and conditions related to cover under any insurance policy. 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.

Visit Strata Insurance OR Strata Information Pages by State.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search For Strata Articles

  • Advert Stratabox
  • StrataBox Advert
  • Advert: StrataLoans
  • Advert: StrataLoans
  • Advert: StrataLoans
Subscribe Newsletter

TESTIMONIAL

"The newsletter is very helpful and gives great guidance with commonly asked questions." Gayle, Lot Owner – November 2020
"I love your regular emails and now this fantastic magazine! Keep up the great work. " David, Lot Owner – August 2020

Quick Login

Log In
Register Lost Password

Categories

  • COVID-19
  • Ask A Strata Question
  • New South Wales
  • Queensland
  • Victoria
  • Australian Capital Territory
  • South Australia
  • Tasmania
  • Western Australia
  • Northern Territory
  • ByLaws & Legislation
  • Smoking
  • Parking
  • Noise & Neighbours
  • Insurance
  • Pets
  • Levies
  • Law Reform
  • Maintenance & Common Property
  • Committee Concerns
  • NBN & Telecommunications
  • Building Defects
  • Renting / Selling / Buying
  • Strata Managers
  • Building Managers and Caretakers
  • Strata Reports / Plans
  • Sustainability

Recent Comments

  • Annie barker on NSW: Best Way to Solve Resident Parking Problems in Your Apartment Building
  • John on NSW: Invasion of Privacy by CCTV Cameras
  • jenny on QLD: Car Park Reconfiguration
  • William Marquand on QLD: How To Manage Parking Dilemmas At Your Complex
  • Nikki Jovicic on WA: Strata manager or council of owners not acting in your best interest?
  • Peter O'Grady on VIC: Q&A Owners Corporation – No Repairs and Maintenance
  • Sue on WA: Strata manager or council of owners not acting in your best interest?
  • stephen on NSW: ByLaw Review. How / Where do we register our new bylaws?
  • Diana Oakes on WA: Q&A Where can I make strata manager complaints in WA?
  • Stephanie on WA: Q&A Procedure for Appointing a New Strata Manager

WEBSITE INFORMATION

  • Privacy Policy
  • Terms and Conditions of Use
  • Terms of Use for Comments and Community Discussion
  • Advertising Disclosure
  • Sitemap

SCA Membership

SCA WA Membership

ASK A STRATA QUESTION

Disclaimer

The opinions and/or views expressed on the LookUpStrata site, including, but not limited to, our blogs and comments, represent the thoughts of individual bloggers and our online communities, and not those necessarily of LookUpStrata Pty Ltd. In all instances, information should not be taken as advice and independent legal advice should be consulted.

CONTACT US VIA EMAIL

Copyright © 2021 · LookUpStrata ® Pty Ltd · All rights reserved