This article discusses how to reduce rising duplex strata insurance premiums by reviewing quotes, sums insured and excesses.
Question: Our insurance annual premium have increased significantly. How do we find the best and most affordable insurance for our property?
We own and live in a duplex. The other owners rent their duplex. Both lot owners are on very good terms and we have always come together for reasonable strata insurance.
Recently, our insurance company has increased our annual premium significantly. Is there anything we can do to find the best and most affordable insurance for our property?
Answer: Go to market and seek quotes
There are a number of things that can be done to reduce your premium.
Firstly, go to market and seek quotes. For duplex’s direct insurers are often the best insurers to approach.
The next thing is to check your building sum insured. Some insurers will increase the sum insured by 5% each year even in years where the actual increase is much less. This can have the impact of inflating the sum insured above what is required. In QLD it is a requirement that an insurance rebuild valuation is conducted every five years – an opinion by a valuer may recommend a reduction in your sum insured which will reduce premiums.
Lastly, you can consider increasing your excesses as a way of reducing premiums.
We are currently experiencing a hardening market which means premiums are increasing, but the above three measures should be considered as options for reducing premiums.
This post appears in the September 2021 edition of The QLD Strata Magazine.
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.