This video covered a queried from a QLD reader about timing of insurance renewals.
Question: Our strata insurance for the original AGM in our new building was valid until the 31 July 2020 with insurance company A. The following year it was paid on the 30 May 2021 to our body corporate management company’s own insurance company B. Every year after, our AGM is in July or August. We’re never given the chance to vote the insurance premium down as we vote after it’s already been paid. Is this legal?
Key points covered in Tyrone’s and Chris’s response:
- Under Queensland legislation, even if a committees can do something like renew insurance, a committee’s power to decide on something like strata insurance renewal can be restricted. This is known as a restricted issue.
- It can be impractical for owners to vote on insurance renewals due to time constraints.
- Owners can still be involved in the process:
- Attend committee meetings (with limitations on participation).
- Request to be involved in getting alternate quotes.
- Become a committee member.
- Change the body corporate’s financial year to align with insurance renewals (if necessary).
- If there are conflicts between owners and the committee, address them directly. Don’t use insurance as a bargaining chip.
- Be aware of changes in brokers/insurance companies. Owners have the right to inspect committee records to see if the change was authorised.
Recommendations:
- Be honest about your motives if you have an issue with the committee.
- Committees should act in the best interests of the owners and consider all options, e.g., owner-sourced quotes.
Watch the short video in full to hear the detailed discussion between Tyrone Shandiman and Chris Irons.
Video presenters:
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898
Article author: The Lookupstrata Team
This post appears in Strata News #699.