This article discusses whether a bank can be listed as an interested party on a strata insurance certificate, explaining when lenders may request this and how owners can obtain a certificate of currency.
Question: My bank wants a certificate of currency from our insurer for our new apartment. Does the insurer include the bank as the “interested party”?
As part of our loan conditions, my bank wants a certificate of currency from our insurer for our new apartment. How does the owners corporation, which pays for the insurance on the building, acknowledge our title? Can they include the bank as the “interested party”?
Answer: You can request the insurer issues a certificate of currency with the bank noted as an interested party if this is a requirement.
A certificate of currency is a common document provided by insurers that confirms there is an insurance policy in place for the property. You should be able to request this from the current insurer of your property.
In the absolute majority of cases, banks do not require that they are noted as an interested party on a certificate of currency because strata legalisation in various states protects interest of financiers with regard to the lot including their interest in the strata insurance. We generally find it is only those lenders who are not major lenders who request this information, as they do not fully understand the legislation.
You can request the insurer issues a certificate of currency with the bank noted as an interested party if this is a requirement.
This post appears in the December 2021 edition of The VIC 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.